Shoprite, the South African supermarket giant, has sold all its equity stake in its Retail Supermarkets Nigeria Ltd subsidiary. With this sale, it means the retail giant is getting closer to exiting Nigeria.
The company first announced in August 2020 that it was leaving Nigeria. The exit process was probably slowed after the Federal High Court in Lagos made an order of Mareva injunction stopping Shoprite Checkers (PTY) Limited from disposing of or transferring its assets out of jurisdiction over a $10m judgment debt.
The retailer has now announced in its latest financial report that the terms of sale have been concluded, and awaiting the approval of the Nigerian Federal Competition and Consumer Protection Commission (FCCPC).
Shoprite expects the transaction to be approved by the end of the 2021 financial year after which it will make a clean break from Africa’s largest market after 16 years.
Despite the planned exit, the retailer said it is in the process of concluding a franchise agreement for the Shoprite brand to remain in Nigeria. This will include an administration and services agreement to provide support to the new shareholders operating the outlets.