Owners of Palms Shopping Mall acquire Shoprite Nigeria for N30bn

Persianas, the owners of Palms Shopping Mall, have reportedly acquired Shoprite as the South African company continues the process to leave Nigeria.

There have been talks of a takeover since Shoprite revealed it is exiting the country.

After a bidding process involving applications from interested investors, Persianas was chosen as the preferred bidder, according to a report by Reuters on Wednesday.

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.

Read also: Shoprite completes sale of Nigerian subsidiary, sets new exit date as protests erupt

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.

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.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now