Shoprite Holdings said yesterday that it had sold its Nigerian operations, Retail Supermarkets Nigeria Limited (RSNL), to a local firm Ketron Investment, a subsidiary of property firm Persianas Investment.
The amount of the deal was not disclosed.
The deal includes both a franchise agreement, which secures RSNL the right to continue to use the Shoprite brand as well as an administration and services agreement, which provides RSNL with administration and technical support from the Shoprite Group for an initial period of five years.
The sale forms part of Shoprite’s strategic review process of its capital allocation to its non-South African operations.
“Accordingly, a decision was taken to dispose of its total interest in RSNL,” said Shoprite.
Shoprite said 70 percent of the transaction proceeds had been received with the balance due in four equal instalments over 30 months.
Shoprite said since its formation in 1990 and under the leadership of its founder, Tayo Amusan, Persianas had grown to become a substantial quality retail, residential and commercial environments in Nigeria.