South African company, Shoprite Holdings Limited has announced that it plans to exit Nigeria. Shoprite has presence in almost all states in Nigeria.
The company said it plans to auction out its stores nationwide, a decision it arrived at due to the menacing impact of the Coronavirus pandemic on major businesses worldwide.
This was contained in the company’s “Operational and Voluntary Trading Update (52 Weeks Ended 28 June 2020)” released on Monday.
The update partly read, “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.”