Persianas Pays for Acquisition of Shoprite Retail Business
Tayo Amusan, Persianas Group Chairman, has paid for the acquisition of South Africa’s Shoprite Holdings retail operations in Nigeria. The ownership has been officially transferred to Ketron Investment, a wholly-owned subsidiary of property group Persianas, according to a statement issued on Wednesday.
Shoprite Holdings had informed its shareholders about an operational and voluntary trading update released on 3 August 2020 wherein it advised shareholders about the potential disposal of its Nigerian operations.
On Wednesday, the company officially told shareholders that the transaction, effected by Shoprite Holdings through its wholly-owned subsidiary Shoprite International Limited, disposing of its 100% shareholding in Retail Supermarkets Nigeria Limited (RSNL), has been successfully concluded and executed.
Recalled that Shoprite International Limited entered into a share purchase agreement with Ketron Investment Limited, a wholly-owned subsidiary of Persianas Investment Limited, for the disposal of its entire interest in RSNL.
Since its formation in 1990 and under the leadership of its founder, Tayo Amusan, Persianas has grown to become a substantial group with proven capabilities to initiate, construct and manage high quality retail, residential and commercial environments in Nigeria.
The terms of the transaction include both a franchise agreement which secures RSNL’s 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 company said as part of its strategic review process the Company evaluated its capital allocation to its non-Republic of South Africa operations. Accordingly, a decision was taken to dispose of its total interest in RSNL.
It advised shareholders that all suspensive conditions relating to the transaction have either been fulfilled or waived; 70% of the transaction proceeds have been received by SIL with the balance due in four equal instalments over 30 months.
All closing date deliverables have been met and the transaction has accordingly been successfully implemented with an effective date of 23 May 2021.
Persianas Pays for Acquisition of Shoprite Retail Business
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