Persianas To Take Over Shoprite In Nigeria

Shoprite is handing over its Nigerian business operations to property group Persianas as the South African retailer pulls out of the Nigerian market.

A report by Reuters on Wednesday disclosed that Persianas Group emerged as the buyer after a bidding process and the company is arranging debt for the buyout.

Shoprite now awaits regulatory approval for the sale to be complete, which is likely to happen before the end of April. The retail giants valued the assets at N30 billion ($73 million), but it is still unclear how much Persianas agreed to pay.

READ ALSO: Shoprite Concludes Move On Disposal Of Nigerian Outlets

According to Reuters, anonymous sources said that MBO Capital and KPMG advised Persianas while FBN Quest, a unit of FBN Holdings, is arranging debt and Investec advised Shoprite.

Shoprite, the owner of South African supermarket chains such as Checkers and U-Save, said last year it planned to exit Nigeria after 15 years operating in the country. The company has struggled with supply-chain disruptions and repatriating funds — both familiar problems to foreign businesses to have targeted the market.

READ ALSO: Shoprite To Shutdown Another Kenyan Store Four Months After First Closure

It is noteworthy that Persianas Group owns the Palms Shopping Mall in Lagos, which also contains a Shoprite outlet.