Here are 5 things to know about Ketron-Shoprite deal

Ketron Investment Limited announced on Wednesday that it has completed 100 percent acquisition of Shoprite stores in Nigeria.

The company said it has received approval from the Federal Competition and Consumer Protection Commission (FCCPC) regarding the change in ownership.

In August last year, the South African company classified its Nigeria subsidiary as discontinued operations as it had marked the business for sale.

Shoprite Holdings is Africa’s largest food retailer, operating 2,843 supermarkets in 15 countries and serving 35 million customers in Africa and the Indian Ocean Islands; its supply chain includes over 300 local suppliers comprising small businesses and farmers.

Now that the deal has been concluded, here five things to know about the deal and the agreement reached by the two parties, Ketron and Shoprite International Limited (SIL):

1. Ketron Investment is a subsidiary of Persianas, owned by Tayo Amusan and has proven capabilities to initiate, construct and manage high-quality retail, residential and commercial real estate in Nigeria.
2. The two parties formed a franchise agreement,  which means the name of the retail company in Nigeria will remain SHOPRITE.
3. An administration and services agreement was signed, which ensures that the Nigerian subsidiary will continue to receive administration and technical support from the Shoprite Group for an initial period of five years.
4. As part of the agreement, 70 per cent of the transaction proceeds have been received by SIL with the balance spread over 30 months in four equal installments.
5. All closing date deliverables have been met and the transaction has been successfully
   implemented with an effective date of May 23, 2021.

Speaking on the acquisition in a statement on Wednesday, Chairman of Ketron, Tayo Amusan said, “We are thrilled to complete the acquisition of Shoprite, ensuring the continued operations of one of the biggest retail success stories in Nigeria.”

He added, “We look forward to building an even stronger company following our acquisition and are excited about the greater impact we will achieve to the benefit of our customers and other stakeholders now and well into the future.

“It is our vision to create fundamental change for the better within Nigeria,” he added.

Ketron said it will continue operations across all existing outlets, with plans to open additional stores and introduce more Nigerian-made products.

The statement said KPMG Advisory Services, MBO Capital Management Limited and Banwo & Ighodalo advised Ketron on the deal.

Commenting on the deal, the CEO of MBO Capital, Jide Ogundare, said, “With the plans we have in place, and with the support of the larger Shoprite family in Nigeria including our staff and every Nigerian shopper that walks through our doors, we are confident of success.”

Since its launch in Lagos in December 2005, Shoprite has expanded to 25 outlets across 11 states and Abuja, FCT.

Add your voice

0 comments