AIC Mareva Injunction:Why Shoprite Cannot Divest From Nigerian Market Now

…..Appeal Court Awards $10m Damages Against Shoprite

There have been much talks about Shoprite divesting from Nigerian market because of the inclement conditions, but Newsnow gathered that the company may not be able to divest and leave now because of the Mareva injunction granted AIC and the litigation over breach of contract. 

Shoprite has also appealed the court of appeal judgment that awarded $10million in favour of AIC for breach of contract.

When the idea of leaving was being contemplated last year, AIC issued a strong warning to prospective buyers because of the ongoing litigation at the final stage in Supreme Court of Nigeria.

Shoprite has made sprited attempts to lift the mareva injunction through courts without success.

Below is the story as published by Newsnow last year.

AIC Limited has warned the general public who may want to invest in Shoprite based on the news emanating from the Firm to do a due diligence because of the litigation that borders on breach of trust, otherwise such investors may be doing so at his or her own risk.

According to the public notice published in The Guardian on Thursday titled, “Shoprite Proposed Exit From Nigeria, Caveat Emptor/Public notice” on page 17 chronicles how Shoprite reneged on the earlier joint agreement reached with AIC Limited to establish Shoprite in west Africa with the exclusion of Ghana.

The public notice says, “ Our attention has been drawn to recent publications in print and news media , On the proposal by Shoprite Holding LTD/Group to divest from Retail Supermarkets Nigeria Ltd preparatory to exiting from the Nigerian market. We note that different reasons have been adduced for Shoprite proposed exit from the Nigerian market.

“Members of the public , particularly, unsuspecting investors of Shoprite shares in Retail Supermarkets are hereby NOTIFIED of the relationship between AIC Limited and Shoprite as well as the concluded and pending lawsuits between AIC and Shoprite.”

Apart from the Lagos High Court and Court of Appeal that have awarded $10million damages for AIC against the Shoprite, AIC has also approached the federal high court, Lagos for Mareva injunction order.

In granting the reprieve, Hon. Justice Liman On 23rd July 2020 in suit no FHC/L/CS/881/2020 granted Mareva injunction against Shoprite in order to prevent Shoprite from hurriedly carting away its intangible assets, intellectual property and receivables from Nigeria in a manner which may render the judgment of the Lagos high court and court of appeal nugatory.

Furthermore, in view of the Mareva orders, Shoprite and Retail Supermarkets, the Registrar of Trademarks and National Office for Technology Acquisition and Promotion (NOTAP) are restrained from taking or allowing to be taken any step(s) That would render the judgment of the court of appeal in the suit no CA/L/288/2018 and the anticipated judgment from the Supreme Court nugatory.

With the public notice, prospective investors are warned to wait till the conclusion of the pending litigation between AIC Limited and Shoprite at the Supreme Court.

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