Shoprite Holdings Limited, said it has concluded the sales of its Nigerian outlets in effort to shut down operations in the country.
The South Africa company had in August 2020, disclosed plans to exit Nigeria over unfavourable market conditions after 15 years of operating in the country.
It stated that following receipt of various approaches, and in line with its reconsideration of the Group’s operating model in Nigeria, the board has initiated a formal process to consider the potential sale of a majority stake of, or its entire shareholding in, Retail Supermarkets Nigeria Limited.
Shoprite, in its latest 2020 financial report stated that the company was awaiting approval from the Nigerian Federal Competition and Consumer Protection Commission after lodging the transaction with the commission.
According to the company, efforts are ongoing to maintain a franchise agreement for the Shoprite brand to remain in Nigeria.
It stated, “We are at the approval stage in terms of the sale of our Nigeria supermarket operation. From here, our capital allocated to the region remains at a minimum and we continue to manage costs as best as we can.
“Statement of comprehensive income reflects profit from discontinued operations separately; assets and liabilities relating to the Nigeria operations disclosed as held for sales.”