… balance due in four equal instalments over 30 months
Ketron Investment Limited, a wholly owned subsidiary of Persianas Investment Limited, which recently bought the Nigerian operations of ShopRite Holdings Limited has made an initial 70 percent upfront payment for the acquisition, MoneyCentral gathered.
The balance of the takeover amount is due in four equal instalments over 30 months, according to documents seen by MoneyCentral.
All suspensive conditions relating to the Transaction have either been fulfilled or waived.
Shoprite Holdings through its wholly owned subsidiary Shoprite International Limited, last week concluded the disposal of its 100 percent shareholding in Retail Supermarkets Nigeria Limited (RSNL).
Shoprite International Limited (SIL), entered into a share purchase agreement with Ketron Investment Limited, a wholly owned subsidiary of Persianas Investment Limited, for the disposal of its entire interest in RSNL.
Persianas was incorporated in 2004 under the leadership of, Tayo Amusan, and has grown to become a substantial group with proven capabilities to initiate, construct and manage high quality retail, residential and commercial projects in Nigeria.
In 2012, IFC (International Finance Corporation) and IFC African, Latin American and Caribbean Fund, LP (ALAC) invested up to $74 million in equity and IFC provided an additional financing of $50million to support Persianas ambitious growth strategy.
The terms of the Shoprite transaction include both a franchise agreement which secures Retail Supermarkets Nigeria Limited’s right to continue to use the SHOPRITE brand as well as an administration and services agreement which provides RSNL with administration and technical support from the Shoprite Group for an initial period of five years.
Since its launch in Lagos in December 2005, Shoprite has expanded to 25 outlets across 11 Nigerian states and Abuja, FCT.
Ketron said it will continue operations across all existing outlets, with plans to open additional stores and introduce more Nigerian-made products.
“It is our vision to create fundamental change for the better within Nigeria,” said Amusan.
KPMG Advisory Services, MBO Capital Management Limited and Banwo & Ighodalo advised Ketron on the deal.
Jide Ogundare, CEO, MBO Capital, in his comment, 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.”