Shoprite concludes sale of Nigerian business
Shoprite has evaluated its capital allocation to non-RSA operations and decided to sell.
Shoprite has sold its 100 percent stake in Retail Supermarkets Nigeria (RSN) to Ketron Investment, a wholly owned subsidiary of Persianas Investment (Persianas). Founded in 1990 by Tayo Amusan, Persianas is the real estate investment partner of choice for commercial and residential real estate development and management in Nigeria. Persianas is also the developer of The Palms shopping mall, which is said to be the biggest mall in Nigeria, if not West Africa.
Shoprite, which has 2,843 supermarkets in 15 countries and serves 35 million customers in Africa and the Indian Ocean Islands, has faced supply chain delays and money repatriation issues, both of which are common challenges for foreign companies operating in Nigeria. Shoprite had 25 locations in eight Nigerian states, but had been plagued by disruptions.
The transaction includes a franchise agreement that protects RSNL’s right to use the Shoprite name in the future, as well as an administration and services agreement that provides RSNL with administration and technical support from the Shoprite Group for a five-year period.
All of the transaction’s suspensive conditions have either been met or waived. Shoprite has already received 70 percent of the funds from this transaction, with the remaining 30 percent payable in four equal instalments over 30 months. All closing date deliverables have been satisfied, and the transaction has been successfully implemented, with an effective date of 23 May 2021.