Shoprite subsidiary acquired in Nigeria as new Investor, Persianas set to Takeover

The South African retailer 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 be taking over Shoprite business in Nigeria.

The retailer has chosen fourth quarter of this year as the period to leave Nigeria where it has been operating for about 15 years 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 occured due to losses suffered by the company.

The retailer's loss rose during COVID-19 lockdown as patronage fell during the period last year. Although, prior to COVID-19 pandemic, the South African-owned supermarket had announced it want 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's company's country rather than splitting resources.

Shoprite store

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 fourth quarter of this year if the deal doesn't fall through.

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