Emirati investor Majid Al Futtaim’s holding company has reached a deal with Africa’s most significant retailer Shoprite Holdings Limited to acquire its Ugandan operations.
The move comes after the company classified its subsidiary, Shoprite Checkers Uganda Limited, as discontinued.
Majid Al Futtaim (MAF) is an Emirati holding based in Dubai. It operates shopping malls and retail and leisure establishments in the Middle East and North Africa through its subsidiaries in 13 countries.
The group was founded by Al Futtaim in 1992 and has since grown into a leading group in the Middle East and North Africa. Futtaim has a net worth of $4 billion, according to Forbes.
The Emirati-based mall developer holds Carrefour franchise rights in dozens of countries, including Uganda.
The group has experienced explosive growth in Kenya, becoming one of the country’s top retailers since its launch in 2016. It also entered the Ugandan market in 2019 and currently operates two stores in the East African country.
Its Carrefour-branded stores in Uganda compete primarily with local retail chains, including Capital Shoppers, with multiple outlets in Kampala.
The recent report that the Emirati mall developer is on course to acquire Shoprite Checkers Uganda Limited follows a statement by Shoprite in its audited report.
Shoprite noted that it has signed the sale agreement for the stores and suspensive conditions will be met before the end of October 2021.
The management of the retail behemoth believes that it is highly probable that the operations will be sold after the reporting date, as the associated assets and liabilities are consequently presented as held for sale in the 2021 statement of its financial position.
The acquisition of Shoprite Checkers Uganda by MAF shows its commitment to expanding its physical presence in Uganda and bolstering its brand presence.
Although the value of the deal was not disclosed by the parties, research conducted by Billionaires.Africa revealed that the total assets of the Ugandan stores classified as held for sale by Shoprite are valued at R198 million ($13.6 million).
