Shoprite to leave Nigeria, initiate sales of majority stake in RSNL
Shoprite Holdings Ltd said it is considering selling its Nigerian unit in a bid to reverse regional sales declines as the top South African retailer battle impact of economic slowdown and currency crisis.
The process to leave Nigeria by the company was initiated after the grocer said in November that it was reviewing its supermarket operations outside South Africa.
Shoprite, Africa’s largest food retailer said it would consider exiting certain countries if that would help reverse regional sales declines.
In a regulatory filing with the Johannesburg Stock Exchange (JSE) on Monday, the company said “Retail Supermarkets Nigeria Limited may be classified as a discontinued operation” in its financial results for the year.
“Following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited.
“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time,” Shoprite said in the regulatory filing on Monday.
The company is not listed on the local bourse; the Nigerian Stock Exchange (NSE) while it is regarded as the biggest superstore in Nigeria with large retail outlets across the country.
Meanwhile, the company reported increases in sales in its core South African business, which rose 9.4 percent in the last three months to June, 2020.