Shoprite to hand-over to palms shopping mall owner, Persianas
Nigerian property group, Persianas, will take over Shoprite’s operations in Nigeria after the company’s exit from Nigeria.
This was disclosed in an exclusive report by Reuters on Wednesday.
According to the report, banking sources confirmed the deal that Persianas Properties emerged as the buyer after a bidding process, and the company is arranging debt for the buyout.
MBO Capital and KPMG advised Persianas while FBN Quest, a unit of FBN Holdings, is arranging debt, the sources said, adding that Investec advised Shoprite.
The report also revealed that Shoprite shares, which fell 1.20 percent in early trade, recovered ground to stand 0.31 percent higher after the news.
Recall that Shoprite has been reviewing its long-term options across Africa as currency devaluations, lower commodity prices and high inflation have hit household incomes and weighed on earnings.
This has led to the company exiting Kenya and Nigeria, restricting capital allocations to its supermarkets outside South Africa and instead investing that money in its home business to take advantage of its dominance in the discount grocery market and growing share in premium food.
Shoprite has said it is in the process of concluding a franchise agreement for the brand to remain in Nigeria as well as a services agreement to provide support to the new shareholders with operating the outlets.