A South African Company operating in Nigeria Known as Shoprite Holdings Limited, has announced its plan to auction off its outlets in Nigeria. Cyting the difficulties affecting major businesses during the COVID-19 pandemic.
The mega holdings has stated that the Board has decided to initiate a formal process to auction off its outlets.
Shoprite in an Operational and Voluntary Trading update of 52 weeks that ended on June 28, 2020. Which was released on Monday August 3, 2020. Shoprite said it has been approached by various potential investors.
The update read "Despite difficult circumstances, in a year incorporating the COVID-19 lockdown and accompanying regulations, the group increased total sales of merchandise for the 52 weeks to 28 June 2020. (Including the impact of hyperinflation in the prior year) by 6.4% to approximately R156.9 billion. Like-for-like growth for the year was 4.4%".
"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 major 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" it said.
This is sad as more than 2000 Nigerians employed by the company across the Nigerian federation where Shoprite operates would have their jobs astaked during the pandemic.
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