In what financial historians will record as another grand master move by Africa’s richest man Aliko Dangote, Tiger Branded Consumer Goods Plc has resolved to change its name back to Dangote Flour Mills Plc. The resolution was contained in a press release issued by the company in the website of the Nigerian Stock Exchange.
The press release also confirms that the company will change its accounting year end back to December 31st from September 30th.
The name was in December changed from Dangote Flour Mills to Tiger Branded Plc after Tiger Brand South Africa. However, as the losses mounted for the company, the South African owner decided to bite the bull selling back the company to Dangote Industries Ltd, owned by Aliko Dangote for $1.
Tiger Brand agreed to 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. 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.