Owners of Palms Shopping Mall acquire Shoprite Nigeria for N30bn

Owners of Palms Shopping Mall acquire Shoprite Nigeria for N30bn

Persianas, the owners of Palms Shopping Mall, has 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.

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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 debit 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.