Tiger Brands, a South African food company, has reached an agreement with UAC of Nigeria Plc (UACN) to sell its minority equity stakes in one of the subsidiaries of the latter – UAC Foods Limited.
This was disclosed in a statement signed by UACN Secretary, Nkem Agboti, and made available on the website of the Nigerian Exchange Limited (NGX).
According to the notice, the minority interest held by Tiger Brands will be purchased by the parent company – UAC of Nigeria Plc. The deal is expected to be completed in September 2021, and upon completion, UAC Foods will continue to operate as a subsidiary of UACN providing nutrition to millions of Nigerians.
Recall that Tiger Brands in 2011 acquired a 49% stake in UAC’s Food and Beverage business. A joint agreement was reached between the parent company and Tiger Brands to manufacture and distribute some selected products, namely Gala sausage rolls, Supreme Ice Cream and Swan water.
Similarly in 2012, Tiger Brands purchased a majority stake of about 67.5% in Dangote Flour Mills worth almost $200 million. It sold it back to the company three years later – in 2015, and wrote down $76 million worth of loans it granted to the company.