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.
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