Shoprite Sold To Nigerian Company Persianas
Property company, Persianas has won the bidding war and will now acquire shopping outlet, Shoprite
The Nigerian unit of the shopping mall is valued at $73 million as both parties prepare to finalize the deal
Africa’s largest grocer has faced supply shortages and made losses in consecutive years
Shoprite Holdings Ltd. is in the process of selling its Nigerian unit to a property group in the country, Persianas.
Persianas is currently arranging debts as both parties prepare to finalize the deal.
Regulatory approval for the completion of the deal is expected by the end of April, according to an unidentified person who spoke to Bloomberg.
Although the Nigerian unit of Shoprite is valued at $73 million, it is unknown how much Persianans agreed to pay.
The South African shopping company announced last year that it was set to leave Nigeria after operating for 15 years.
Over the years, major South African retailers like Woolworths Holdings Ltd., Truworths International Ltd., and Mr. Price Group Ltd. have exited Nigeria.
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Even South African telecom company, MTN has been caught up in various crises.
Shoprite will now focus on increasing its dominance in the South African grocery sector, where it is currently a powerhouse.