Billionaire Tayo Amusan is set to buy Shoprite’s stake in Nigeria following the news that the retail giant is quitting Nigeria and other African markets amid an economic downswing.
Shoprite has more than 2,300 stores across Africa and is currently awaiting regulatory approval on the sale of its Nigerian supermarket operation.
Shoprite reported a decline in sales of 6.3 percent in the 2020 fiscal year. The international retail chain officially initiated the formal process for liquidating its majority share.
“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,” the company’s memo reads. “As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year.”
Amusan made his millions after founding Persianas Properties in 1990. Amusan sits on the board of several Nigerian companies, including African Paints Nigeria Limited. He is also the chairman of Resourcery Limited.
According to Face2Face, Shoprite will retain management of its chain of operations, brand name, trademarks, and supply chain. In an internal obtained seen by TheCable, Carl Erickson, general manager of the retailer, informed employees that the revision in the business is to make the company “truly Nigerian.”
“The expansion of the retail business in Nigeria to a greater consumer market should remain everybody’s shared vision. It has, however, become apparent that the best manner in which to do this is by engaging Nigerian investors who share in this vision. In so doing we will be creating a truly Nigerian business run and owned by Nigerians for the Nigerian market.”