South African Company, Shoprite Holdings Limited, says it is has commenced a formal process to consider the potential sale of its Nigerian operations.
This was contained in the company’s “Operational and Voluntary Trading Update (52 Weeks Ended 28 June 2020)” released on Monday.
According to Shoprite, further updates will be provided to the market at the appropriate time.
“Following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited,” Monday’s updated read.
“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year.
“Any further updates will be provided to the market at the appropriate time.”
The plans were first mulled in November 2019 after the grocer said it was reviewing its supermarket operations outside South Africa and would consider exiting certain countries if that would help reverse regional sales declines.
The retailer has been battling currency-induced inflation surges in several other African countries.
Shoprite commenced operations in Nigeria nearly 15 years ago, opening its first store in Lagos in December 2005.