Tiger Brands Limited, a leading South African fast moving consumer goods company, is seeking to increase its stake in Dangote Flour Mills (DFM) to 70 per cent. Tiger Brands currently holds 63.35 per cent, following Dangote Industries Limited (DIL)’s divestment of 3.67 billion ordinary shares to the South African firm last year for $181.9 million.

However, a regulatory filing at the Nigerian Stock Exchange (NSE) by Tiger Brands indicated that the company wants to buy additional 332.5 million ordinary shares of 50 kobo each at a N9.50 per share from minority shareholders of DFM. The deal has already received the provisional approval of the exchange, although details remained sketchy.

Additional 332.5 million shares would bring the total holdings of Tiger Brands to 3.5 billion shares, which 70 per cent of the 5.0 billion paid up shares of DFM.

THISDAY checks revealed that at the conclusion of the proposed transaction, DIL will retain its hold 10 per cent, Tiger Brands 70 per cent, while other investors will have 20 per cent.

When DIL sold 63.3 per cent stake to Tiger Brands last year, the share purchase agreement provided that DIL retained a strategic 10 per cent, while President of the Dangote Group, Alhaji Aliko Dangote, also retains his chairmanship of the board of the flour mills.

Dangote Group had explained that the decision to divest was in furtherance of DIL's optimisation and diversification objective and relates specifically to its going forward strategies for DFM.
DFM has been struggling with declining bottom-line in recent times, posting a loss of N3.8 billion for the first half of 2013 to June 30.

Speaking on the acquisition of the 63.3 per cent last year, the Chief Executive Officer of Tiger Brands, Mr. Peter Matlare, said: “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.”

He had added that the company would go up to 70 per cent after the initial acquisition last year. “We will go up to a maximum of 70 per cent in total, leaving the balance in Nigerian hands,” he said.

Tiger Brands, a maker of bread, breakfast cereal and energy drinks, expanded outside its home base last year with acquisitions in Nigeria and Ethiopia.

http://www.thisdaylive.com/articles/tiger-brands-to-increase-stake-in-dangote-flour-to-70-/162361/

I hope they won't wake up one morning and decide to convert their nigerian staff to south africans. Indians are fond of that rubbish.

DANGOTE!!!

go gej go gej go.......\/

How dangote take start ?
Was he an ajeborian or kpakorian ?


Google no sabi pidgin .



Like is appreciated sosong

Good, but make dem also increase deir stake in d garri market!

Na dem sabi, so far say i still dey see agege bread N50 buy no wahala.





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Shiiiiiiiiiiiit.......!

Am sure when dangote's mum was pushing him out of her womb he came with coins in one hand and cement in the other,... Please stop making money shuo

K,nw

Is this really worthy of frontpage news? Like what comment am I expected to make?
Da f.u,ck they can increase it to 100% no one cares!

blink182: I hope they won't wake up one morning and decide to convert their nigerian staff to south africans. Indians are fond of that rubbish.

There's a law for that already

blink182: I hope they won't wake up one morning and decide to convert their nigerian staff to south africans. Indians are fond of that rubbish.

That can only happen in Nigeria, they should try such in Egypt or any North african countries

na him get him company..if you like sell am....am less concerned...op next topic am beginning to get bored here..... wakes out in my new pair of shoes...off i go....................................
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k

How does that now call off the prolonged ASUU strike for we students?

The South Africans at it again.... First it was in 1900 then 1914 when they sold Nigeria to the British Government... a business transaction and now they are using a third party... South Africa ...





They are doing all these and the funny politicians are doing siddon-look-no-jutsu on the issue while spending the money on armoured vehicles abi..


God is watching.

Concerned Nigerians should be scared.... Really scared

imsu.boi:
Concerned Nigerians should be scared.... Really scared

Of what na. Are we not globe-trotting looking for foreign cash injection. Now it comes we want tablet instead. Dangote is no slouch. He needs the cash, the oily business beckons and for our sakes we better hope he succeeds. Can't blame a private man and his toys. Ask thieving politicians to invest their loot here and bring in machine tools instead of finished goods.

DIL only owns 10%. I wish a foreign company did not own the majority shares.

These guy are really making a statement of intent by going aggressive outside South Africa and someone will tell me Nigerians are astute businessmen...

Tiger is the next big thing is SA they snatching talents right, left and centre... and they pay very very well too.