Attacq and Hyprop Investments, the two listed funds have announced that the sale of their interests in Ikeja Mall in Nigeria is still on the cards despite delays. The two SA funds have been trying to exit the Nigerian mall for more than a year after it disappointed as an investment. They have said it didn’t perform as they projected it to with the Nigerian economy slowing.
This week, Nigeria’s treasury reported that it expected to see the economy slow further in the second half of this year as it grapples with a mounting number of headwinds threatening to exacerbate the country’s high poverty and unemployment levels. While the country’s real GDP growth was 3.11% in the first half of the year, consumer price inflation has skyrocketed to 17.71% as reported in May. A fiscal deficit, naira depreciation against the US dollar and uncertainty around the outcome of 2023’s pending national elections have also placed pressure on the economy’s prospects.
On Monday both Attacq and Hyprop said shareholders were referred to previous announcements regarding the disposal of Ikeja City Mall, the last of which was released on April 1 2022 wherein shareholders were advised that the longstop date to implement the transaction was extended to June 30 2022. This was on condition that a fully compliant merger application be submitted by the purchaser to the Federal Competition and Consumer Protection Commission of Nigeria on or before May 31 2022.
“Shareholders are advised that a merger application has been submitted, the outcome of which remains pending. The parties have accordingly agreed to extend the longstop date to implement the transaction to December 31 2022,” they said.
“The parties remain committed to the transaction. Should there be any further developments relating to the transaction, shareholders will be updated accordingly,” they said.