Shoprite plans to open up its retail supermarkets in Nigeria to potential investors, which may lead to the sale of some or all its stake in the country .
Already, the company , in its Operational and Voluntary Trading Update published on Monday, says the Nigerian subsidiary of Shoprite Holdings Limited may later be classified as “ a discontinued operation ” when it reports its results for the year .
The publication was dated dated 3 August 2020 , complete with names of stakeholders given as: Pieter Engelbrecht [Chief Executive Officer]; Anton de Bruyn [Chief Financial Officer]; Adele Lambrechts [Corporate affairs and communications ]; and Natasha Moolman [Investor relations ].
Shoprite , which started operation in Nigeria in 2005 , is a leading South African mass retail supermarket , with about 25 outlets in the country.
In an email response to enquiries from the company ’ s media team in South Africa , the company referred our Correspondent to the section of the operational and trading update stating its plans to discontinue operations in Nigeria .
Quoting the document, the media team said , “ 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 . Any further updates will be provided to the market at the appropriate time . ”
According to the full year sales report for the period ended June 28 , 2020 , the Nigerian subsidiary reported negative sales growth of - 6 . 3 per cent .
Meanwhile , the Country Manager, Chastest Consult , a Public Relations Company for Shoprite Nigeria , Mr . Ini Archibong, in a telephone conversation with our Correspondent, denied the report , saying the company had over $ 30 bn investment in Nigeria.
According to him , the company was not ready to abandon its investment in Nigeria.
Shoprite is not leaving Nigeria. With over $ 30 bn investment in the country , the company will not leave the country , ” he said .
The PUNCH, alongside other global media , had reported that the company was to exit Nigeria.
See the bromide of the statement :
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