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.