Tayo Amusa’s Persianas Property Ltd. is buying Shoprite’s Nigeria business as the South African retailer retreats from other African markets, Reuters reported. The company is a subsidiary of Persianas Group Ltd.
The retailer seeks to channel its energy, growing its market share in South Africa, its primary market. It stands as the leading force in the country’s grocery sector.
It also valued and hoped to sell its assets at 30 billion naira ($73 million). However, the South Africa-based retailer is waiting for the necessary regulatory approval to sell its Nigerian operations.
Shoprite has over 25 retail stores across Nigeria, with more than 2,300 stores in Africa. Persianas emerged as the winner after a bidding process. According to Reuters, the company is arranging debt for the buyout.
The behemoth retailer has operated in Nigeria for about 15 years. However, in 2020, it planned to exit the country, as well as other African states. Its core challenges, Bloomberg reported, are its struggle with supply-chain disruptions and repatriating funds.
Tayo Amusan is the chairman and managing director of Persianas Group Ltd., a company incorporated in 1990, Pitchbook reported. Persianas Property Ltd. focuses on developing luxury residential, retail, entertainment and hospitality centers and commercial developments in Nigeria.
Before this recent bid, Persianas built standard malls that housed Shoprite and other South African retailers and businesses, such as Game, Genesis Deluxe Cinemas, Woodworth and Mr. Price.
Its flagship shopping mall, which opened in late 2005, is The Palms Shopping Mall Lekki, Lagos. It also built The Palms Shopping Mall Enugu, Nigeria’s second-largest shopping mall, in 2014.