South Africa’s grocery retailer, ShopRite, which opened its first shop in Nigeria in 2005 has commenced plans to leave the West African country.
In a trading update filed at the Johannesburg Stock Exchange on Monday, the retail giant declared that it was set to it discontinue its operations in Nigeria.
The company claims it had been approached by interested investors willing to take over its Nigerian operations.
It also said it was considering an outright sale of its operation or would sell a majority stake in its Nigerian subsidiary.
A part of the update reads, “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.”