Shoprite Holdings has sold its Nigerian business to local buyer Ketron Investment, it said on Wednesday, nearly 16 years after the South Africa (SA) retailer opened its first outlet in the country. In a report made public from Johannesburg, South Africa yesterday, Shoprite disclosed that it has 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 in the statement but it is believed to worth millions of dollars in value. South Africa’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 per cent of the transaction proceeds have been received with the balance due in four equal installments over 30 months. Persianas had emerged as the buyer of Shoprite’s Nigerian operations after a bidding process in April