The Chief Executive Officer of Shoprite Holdings Limited, Pieter Engelbrecht has announced the sales of its supermarket operations in Nigeria.
The CEO said, the company is waiting for approval from the Federal Competition and Consumer Protection Commission after lodging the transaction with the commission.
He said the company will shut down operations by disposing of a 100 percent equity stake in its retail supermarket in Nigeria.
The CEO, also said, the company management expects the transaction to be approved by the end of the 2021 financial year, stating that, the company has concluded the process of the franchise agreement for the Shoprite brand to remain in Nigeria and also an agreement to provide support to the new shareholders.
This was made known on the company’s website on Tuesday in its latest financial reports for December 2020.
According to the reports, the Chief Executive Officer said, “We are at the approval stage in terms of the sales of our Nigeria supermarket operation.”
He said, “From here, our capital allocated to the region remains at a minimum and we continue to manage costs as best as we can.”
The CEO also said that the statement of comprehensive income reflects the profit separately from discontinuing operations, stating that, assets and liabilities relating to the Nigeria operations are held for sale.
The CEO said the board decided to formally exit its operations in Nigeria over unfavorable market conditions, while stating that, the company in its half-year financial report in August 2020, announced that it would gradually shut down its operation in Nigeria.
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