South African Company, Shoprite Holdings Limited says it is on the verge of concluding the sale of its Nigerian outlets.
The company proposed to shut down operations in the country by disposing a 100 per cent equity stake in its Nigerian retail supermarkets.
Shoprite in its latest financial report for December 2020 operations obtained from the company’s website on Tuesday, stated that the company was awaiting approval from the Federal Competition and Consumer Protection Commission after lodging the transaction with the commission.
According to the company, the management expects the transaction to be approved by the end of the 2021 financial year.
It was also revealed that the management was in the process of concluding a franchise agreement for the brand to remain in Nigeria as well as an administration and services agreement to provide support to the new shareholders with operating the outlets.
Its Chief Executive Officer, Pieter Engelbrecht said, “We are at the approval stage in terms of the sale of our Nigeria supermarket operation.”
Peter said the capital allocated to the region remains at a minimum and the company will continue to manage costs as best as it can.
He added that, “Statement of comprehensive income reflects profit from discontinued operations separately; assets and liabilities relating to the Nigeria operations disclosed as held for sale.”
The company after announcing its 2020 financial mid year report in August last year had earlier revealed that it would gradually end its operation in Nigeria.
Shoprite said the board decided to formally exit its operations in Nigeria over unfavourable market conditions.