Shoprite Announces Sale of Business in Ghana, Malawi as Inflation, FX Plagues Nigerian Operation
- Shoprite Holdings announced it is selling its businesses in Ghana and Malawi to focus more on its domestic market
- The company cited challenges such as currency volatility, inflation, and high import taxes in markets like Angola and Nigeria
- It also expects a rise in headline profits per share and group revenues for the 52 weeks ending June 29
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Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
In an effort to concentrate more on its domestic market, Shoprite Holdings, the largest grocery retailer in South Africa, announced on Tuesday that it is selling its businesses in Ghana and Malawi.
Source: Getty Images
The supermarket chain has grown significantly in Africa, overtaking competitors like Pick n Pay and Walmart-owned Massmart to take the top spot as the continent's leading food retailer in around 15 nations.
However, currency volatility, double-digit inflation, high import taxes, and dollar-based rentals plagued market expansions, including those into Angola and Nigeria.
It was stated on Tuesday that Shoprite Malawi had inked a deal on June 6 to sell five trade locations, subject to a number of requirements, including permission from the Reserve Bank of Malawi and the Competition and Fair Trade Commission, Reuters reported.
Additionally, the company added that it anticipates headline profits per share from continuing operations to increase by 9.4% to 19.4%, from a restated 11.85 rand in 2024, in the 52 weeks ending June 29.
Group revenues from ongoing operations are predicted to increase by 8.9%, reaching $252.7 billion (approximately $14 billion).
Court orders owners to stop Shoprite sales
Legit.ng reported that Owners of Shoprite Malls in Nigeria have been restrained from selling off their assets in the country.
The move was as result of Federal High Court judgment in Abuja. The interim injunction was issued on November 6, 2023 by Peter Kekemeke, the presiding judge.
There has been a lingering legal battle between the South African management of Novare Investment (PTY) Limited and its Nigerian partners following the company's plans to divest from Nigeria.
Kekemeke, according to TheCable report, ruled that the parties should refrain from taking further action on any of the company's properties until after February 13, 2024, when the motion on notice is decided.
It listed the properties to include; Novare Mall, Lagos; Novare Mall, Sangotade, Lagos; Novare Gateway Mall, Musa Yar’Adua Expressway (Airport road), Lugbe district, FCT; Novare Mall, Apo, Murtala Mohammed Expressway, Abuja; Novare central mall, Wuse zone 5, Abuja; and all other Novare Malls under construction in Nigeria pending the hearing and determination of the motion on notice.
The Nigerian partners of Novare Investment (PTY) Ltd., Grand Towers Realty Ltd., and Grand Towers Plc, as well as Nze Duru, had filed the petition via their attorney, Darlington Ozurum.
Derick Roper, Novare Africa Fund Plc, Novare Fund Management Ltd, and Novare Equity Partners (Proprietary Ltd) were the defendants in the lawsuit.
Coca-Cola Sells CHI Limited to UAC
Legit.ng reported that the Coca-Cola Company decided to sell Hollandia/Chivita (CHI Limited) to UAC of Nigeria PLC.
Subject to regulatory approval, the deal represented a significant milestone in UAC's expansion ambitions, increasing its position in Nigeria's fast-moving consumer goods industry, the company stated in a filing on the Nigerian Exchange Limited.
“It supported The Coca-Cola Company’s strategy to operate a flexible and asset-light model and focus on brands that have the greatest potential to scale,” the filing on NGX said in part.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
