South African retail shopping mall, Shoprite Holdings, owner and operator of Shoprite, has concluded and sold the business venture in Nigeria to to a Nigerian, Letting Investment. This is even as Shoprite has, by this decision, ended her sixteen years Sojourn in Nigeria after the South African retailer opened its first outlet in the country nearly 16 years ago.
Shoprite entered into a share purchase agreement with Ketron, a Nigerian company owned by a group of institutional investors led by property group Persianas, for the disposal of its entire interest in Retail Supermarkets Nigeria Limited, Shoprite and Ketron said in separate statements. The price on the sale was not disclosed.
The SA’s biggest grocer has been reviewing its long-term options across Africa to focus more on its home market and has already exited Kenya.
The terms of the transaction include a franchise agreement, which secures the Nigerian retailer’s right to continue to use the Shoprite brand, Shoprite said.
It also includes an administration and services agreement which provides the business with administration and technical support from the Shoprite Group for an initial period of five years.
Shoprite added that 70% of the transaction proceeds have been received with the balance due in four equal installments over 30 months.