Shoprite Exit from Nigeria almost done as new Investor, Persianas set to Takeover
- South African retailer, Shoprite, has finally sold its Nigerian subsidiary to a new investor as the company closes in on exit date
- Persianas, the owners of Palms Shopping Mall, are the new investor set to take over Shoprite business in Nigeria
- The retailer has chosen the fourth quarter of this year as the period to leave Nigeria where it has been operating for about 15 years
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Shoprite parent company has sold its Nigerian subsidiary to Persianas, a real estate company. The deal will see the new investor gain access to over 20 stores in Nigeria.
MBO Capital and KPMG had advised Persianas. The acquisition of Shoprite supermarket chains had occurred due to losses suffered by the company.
The retailer's loss rose during the COVID-19 lockdown as patronage fell during the period last year. Although, prior to the COVID-19 pandemic, the South African-owned supermarket had announced it wants to leave Nigeria.
Shoprite stated that it is pulling out its investment in the country just as it did in Kenya, to focus its attention on the retail business in the parent company's country rather than splitting resources.
Source: Getty Images
It was learnt that several investors showed interest in taking over Shoprite stores in Nigeria. However, Persianas, the company that owns Palms Shopping Mall was chosen.
The sale is reportedly worth N30 billion according to Bloomberg, but the actual amount hasn't been disclosed by the retailer. To fund the acquisition, Persianas will raise debt.
According to Reuters report, FBN Quest will arrange debt for the new investor expected to takeover by the fourth quarter of this year if the deal doesn't fall through.
Meanwhile, Legit.ng had previously reported that Nigerian energy company, SHYFT Power Solutions, raised $3.1 million from five international and local investors.
SoftBank Vision Fund’s Emerge Program and Total Carbon Neutrality Ventures had led the capital infusion into SHYFT, while Lofty Inc., Samurai Ventures, and Urban US Ventures contributed.
The new fundraising increases the total funds received to $3.8 million, as the startup looks to tackle the power supply in Nigeria by digitising electricity.
Source: Legit.ng
