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Owner of Palms Shopping Mall Acquires Shoprite Nigeria Operations

Owner of Palms Shopping Mall Acquires Shoprite Nigeria

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Owner of Palms Shopping Mall Acquires Shoprite Nigeria Operations

Nigeria’s property group Persianas Properties, owner of Palms Shopping Mall has acquired all business-related & food chains outfits of Shoprite in Nigeria, according to a report from Reuters. Sometimes late last year, the South African retailer outfits Shoprite announced its exit from the Nigerian market after 15-years of business operation in Africa’s biggest and largest economy.

For over months now, the takeover talks have been going on with several investors bidding on the supermarket chain, but eventually, Persianas Properties was chosen as the preferred bidder, according to a report by Reuters on Wednesday.

Shoprite, with more than 2,300 stores across Africa, is awaiting regulatory approval on the sale of its Nigerian supermarket operation, though no further details have been disclosed.

The acquisition is expected to be around N30 billion, which is what Bloomberg valued the sale to be, although Shoprite has been tight-lipped on the actual amount offered by Persianas.

The new investor of the supermarket chain owned by Shoprite South Africa intends to use debt to close the acquisition deal. It was gathered that FBNQuest is assisting in the debt arrangement.

Owner of Palms Shopping Mall Acquires Shoprite Nigeria

Owner of Palms Shopping Mall Acquires Shoprite Nigeria

MBO Capital and consultancy firm, KPMG advised Persianas. This deal will make the investor a direct owner of Shoprite store in Palms Shopping Mall and other mall rivals.

Ripples Nigeria had previously reported that Shoprite has completed the sale of its Nigerian subsidiary after 15 years of operation in Nigeria which birthed over 20 stores across the country.

The South African retailer has set the fourth quarter of this year as its exit date. The company had previously planned that it will leave Nigeria in the fourth quarter last year. Shoprite had been running at loss in Nigeria.

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