Shoprite is reportedly gearing up to sell all majority stake of its Nigerian subsidiary, and billionaire businessman Tayo Amusan is first in line to make the sale.
According to reports, the retail giant is withdrawing from Nigeria and other markets due to currency devaluation, lower commodity prices, and high inflation hitting household incomes. As of now, Amusan and his company is currently the leading bidder for Retail Supermarkets Nigeria Limited, the country’s subsidiary of Shoprite International Limited.
Amusan, who a business mogul of over two decades is credited for building The Palms Shopping Mall in Lagos, Nigeria’s first mall of international standards that also houses a Shoprite store, back in 2004. He then replicated it in Enugu, Kwara, Ota, and Ibadan.
The outlet also reports that Shoprite has over 2,300 operating shops across Africa and launched in Lagos, Nigeria about 15 years ago with more than 25 retail stores in the West African nation.
In a trading update, Shoprite reportedly filed at the Johannesburg Stock Exchange (JSE) and noted that the formal process for liquidating its majority share has officially begun. In a memo, it states:
“Following approaches from various potential investors, and in line with our re-evaluation of the group’s operating model in Nigeria, the board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited. As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year.”
However, under the upcoming acquisition deal, Shoprite will keep at bay the “management of its chain of operations, brand name, trademarks, and supply chain.”
Another internal memo from the company also reveals how the business will reinvent itself to become “truly Nigerian.”
“The expansion of the retail business in Nigeria to a greater consumer market should remain everybody’s shared vision,” it reads. “It has, however, become apparent that the best manner in which to do this is by engaging Nigerian investors who share in this vision. In so doing we will be creating a truly Nigerian business run and owned by Nigerians for the Nigerian market.”
