According to report reaching oyogist.com, Persianas is buying Shoprite’s business in Nigeria as the South African retailer retreats from other African markets.
According to our correspondent, three banking sources told Reuters that Persianas Properties emerged as the buyer after a bidding process and the company is arranging debt for the buyout. The Palms shopping mall, Persianas’ flagship mall, houses a Shoprite store in the West African country’s commercial capital, Lagos.
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.
Shoprite has more than 25 retail stores across Nigeria, including some of the largest in West Africa.
Persianas and Shoprite declined to comment on the deal.
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.
Shoprite shares, which fell 1.20% in early trade, recovered ground to stand 0.31% higher after the news.
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.