Tiger Brands acquires a 63.35% shareholding interest in Dangote Flour Mills in Nigeria
Sep 25th 2012, 08:54
Tiger Brands Limited (“Tiger Brands”) and Dangote Industries Limited (“Dangote”) are pleased to announce they have executed a share sale and purchase agreement which will result in Tiger Brands acquiring a 63.35% shareholding in Dangote Flour Mills Plc (“Dangote Flour Mills”) for approximately R1.5 billion from Dangote. The transaction is expected to be effected during the first week of October 2012.
This will be Tiger Brands’ third and largest acquisition in West Africa, in line with its strategic focus on developing its Africa footprint.
Peter Matlare, CEO of Tiger Brands says: “We are especially pleased with the successful conclusion of this transaction. We believe it will present growth opportunities for both organisations and be mutually beneficial. Dangote Flour Mills will add significant scale to Tiger Brands’ existing Nigerian businesses.”
Aliko Dangote, Chairman of Dangote Industries Limited, believes the partnership will make a significant contribution to Dangote Flour Mills and says: “Tiger Brands will bring its expertise in milling to the partnership, to further develop and grow the business.”
The Dangote Flour Mills group achieved a total turnover of approximately R3.2 billion for its latest financial year ended 31 December 2011. This would increase the contribution from Tiger Brands’ consolidated international operations from 15% to 26%, on a pro forma basis, for Tiger Brands’ financial year ended 30 September 2011.
Dangote will retain a strategic interest of 10% in Dangote Flour Mills for a minimum period of five years, with Aliko Dangote continuing as Chairman of Dangote Flour Mills.
Peter Matlare added “Tiger Brands views its strategic relationships with both the Dangote and UAC groups as crucial to its continuing success within the Nigerian FMCG sector.” Tiger Brands acquired a 49% joint venture interest in UAC of Nigeria Plc’s Food and Beverage businesses in May 2011.
Tiger Brands was advised by Standard Bank and ACL Capital Partners, while Dangote was advised by Vetiva Capital Management Limited and Banwo & Ighodalo.
Tiger Brands’ operations on the balance of the African continent are based in Nigeria, Cameroon, Kenya, Ethiopia and Zimbabwe.
Tiger Brands profit rises as bakeries, rice volume recovered
31/05/2013 - 08:22
Tiger Brands Ltd. (TBS), South Africa’s biggest food maker by market value, said the company regained volume in bakeries, rice and snacks and treats and maintained profit margins across many of its domestic businesses.
Imperial takes African logistics leap with acquisition of Nigeria’s MDS
14/05/2013 - 08:18
Imperial Holdings has gained a foothold in Nigeria’s fast-growing logistics market with the acquisition of a 49 percent stake in leading Nigerian provider MDS for $26 million (R237m) in cash.
Pioneer Foods appoints new chief
25/02/2013 - 08:52
Johannesburg - South Africa's Pioneer Foods on Friday named a veteran executive from its main rival as its next chief executive, sending shares of the bread and cereal maker higher.
Tiger Brands buys Mrs Ball’s chutney brand for R475m
10/12/2012 - 09:21
Unilever South Africa will sell its Mrs HS Ball’s chutney brand, with a recipe dating from World War I, to Tiger Brands for R475 million.
Tiger Brands to up stake in Nigeria
22/11/2012 - 08:47
Johannesburg - Consumer goods group Tiger Brands [JSE:TBS] is offering to buy out some minority shareholders in Nigeria's Dangote Flour Mills as it expands in fast-growing African markets.