• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Business News
After Writing Off $66 Million, Tiger Brands Is Finally Abandoning Dangote Flour Mills

Dangote To Buy Back Loss Making Flourmills From Tiger Brand For $1

EditorbyEditor
8 years ago
in Business News, Company News
Share on FacebookShare on TwitterShare on Linkedin

Dangote Industries Ltd, the investment holding company of Africa’s richest man is going to buy back Dangote Flourmills (now Tiger Branded Consumer Goods) from  South Africa’s Tiger Brands. According to Reuters, Tiger Brand says it will sell its 65.7% stake in its loss making Nigerian division to Dangote Industries Limited for $1.

The deal will see Tiger Brands receive an immediate cash injection of $46.1m with Tiger Brand taking ownership of debt of about $26.3 million. Tiger Brand has effectively lost all of the money it invested in the company.

Tiger Brand acquired controlling shares in Dangote Flour Mills in 2012 for about $182 million before acquiring more shares to give it total control and taking its purchase consideration to about $200m. Just a few weeks ago the company announced that Aliko Dangote was resigning from the board of Dangote Flourmills and also announced a name change to Tiger Branded Consumer Goods Ltd.

Tiger Brand acquired Dangote Flourmills in the hope that it will use its track record as South Africa’s largest consumer food maker to turn the loss making company around. Instead, it has racked up losses for years and has mothballed some of its mills. Tiger Brand also invested in Deli Foods, UAC as part of its investment spree in Africa’s largest economy.

Terms of the deal:

  • DIL will provide TBCG with an immediate cash injection of N10 billion.
  • In return, Tiger Brands will divest its 65.7% shareholding in TBCG to DIL for a nominal consideration and write off its shareholder loans to TBCG. In addition, Tiger Brands will assume and settle outstanding debt guaranteed on behalf of TBCG.
  • The former directors of TBCG Messrs Olakunle Alake, Arnold Ekpe and Asue Ighodalo have agreed to re-join the board of TBCG and have consequently been reappointed with effect from 10th December 2015 The terms of the Transaction will be set out in a Share Sale and Purchase Agreement (SSPA), which the Parties will enter into.
  • The Transaction and its terms have to be considered and approved by the Securities and Exchange Commission (“SEC”), in accordance with regulatory requirements.
  • The Parties will, as soon as is practicable, submit details of the Transaction and the SSPA to SEC for approval.
  • Apart from the approval of the SEC, implementation of the Transaction will also be subject to the fulfilment of certain conditions precedent, including approval of the Exchange Control Division of the South African Reserve Bank.

 

 

Tags: Aliko DangoteDangote FlourmillsManufacturing
Editor

Editor

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *







NM newsletters
Kwakol
Abbey
IMT

Zenth Bank
UBA
Mega Millions

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • France to recall Ambassador, end all military presence in Niger, says Macron  
  • NSSF highlight commitment to mobilizing funds to improve healthcare
  • NiMPROP to take 14m children back to school and 16.5m Nigerians out of poverty

Follow us on social media:

Recent News

France announces plans to provide 10 million units of COVID-19 vaccine doses to Africa

France to recall Ambassador, end all military presence in Niger, says Macron  

September 24, 2023
NSSF highlight commitment to mobilizing funds to improve healthcare

NSSF highlight commitment to mobilizing funds to improve healthcare

September 24, 2023
  • Download Nairametrics iOS App
  • Download Nairametrics Android App
  • Contact Us
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Opinions

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Login
  • Sign Up

© 2023 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In