News April 19, 2021 at 10:44 am

Tayo Amusan, the billionaire businessman reportedly set to buy Shoprite’s stake in Nigeria

Abu Mubarik April 19, 2021 at 10:44 am

April 19, 2021 at 10:44 am | News

Mr Tayo Amusan. Photo Credit: [Instagram] @grafixcouturebespoke via Judith Pugh

Tayo Amusan is a businessman who is reportedly set to buy Shoprite’s stake in Nigeria. The retail giant is quitting the Nigerian and other African markets over currency devaluation, lower commodity prices, and high inflation hitting household incomes and which have weighed on earnings.

The Nigerian billionaire is famous for his property firm, Persianas Properties, which he founded in 1990. The company is the leading bidder for Shoprite’s business in Nigeria, according to reports.

Shoprite, which has over 2,300 shops across Africa, is reportedly waiting for approval from regulatory agencies to sell its business operations in Nigeria, Africa’s largest economy. The retail giant first launched in Nigeria 15 years ago in Lagos and has over 25 retail stores in the West African nation.

Shoprite in a trading update filed at the Johannesburg Stock Exchange (JSE) said the formal process for liquidating its majority share has begun. “Following approaches from various potential investors, and in line with our re-evaluation of the group’s operating model in Nigeria, the board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited,” it said. “As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year.”

Amusan, 60, is credited with building the first mall of international standards in Nigeria. In 2004, he launched The Palms Shopping Mall in Lagos and replicated it in Enugu, Kwara, Ota, and Ibadan. Palms houses a Shoprite store.  

Under the acquisition deal, Shoprite will retain the management of its chain of operations, brand name, trademarks, and supply chain. An internal memo sighted by the Cable notes that the revision in the business is to make the company “truly Nigerian”.

“The expansion of the retail business in Nigeria to a greater consumer market should remain everybody’s shared vision. It has, however, become apparent that the best manner in which to do this is by engaging Nigerian investors who share in this vision. In so doing we will be creating a truly Nigerian business run and owned by Nigerians for the Nigerian market,” the memo reads.

Real estate investor Amusan is married to Ayo, who holds an MSc in Risk Management from Cass Business School, City University, London. Amusan on the other hand holds a Business Administration graduate of the University of Atlanta.

The Nigerian businessman has 25 years of experience doing business in Nigeria, specifically the real estate sector. He also serves on several boards, including Garages Limited and Southern Petroleum Limited.

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