Tiger Brands of South Africa agreed to sell its major Nigerian food business investment to Aliko Dangote: Report . . .
South Africa’s largest food producer, Tiger Brands Ltd. agreed to sell its business in Nigeria to the richest black man in Africa and Nigeria (Forbes listing), Alhaji Aliko Dangote and his Dangote Industries Ltd., three years after buying it.
Reports indicate that prior to the sale, Tiger Brands’ food business or stake in the Nigeria business was highly unprofitable. Despite that and after the sale, Tiger Brands shares (stocks) soared on the Johannesburg Stock Exchange (JSE Ltd.).
BloombergBusiness reported that Dangote (photo: above) will provide Tiger Branded Consumer Goods Plc of Nigeria with an immediate cash injection of 10 billion naira ($50 million), with Tiger transferring its 65.7 percent stake for a nominal $1, the Johannesburg-based company said in a statement on Monday December 14, 2015.
Tiger will assume and settle debt that it’s guaranteed for the West African business, amounting to 5.6 billion naira, and will write off 700 million rand ($46 million) of loans that it granted the operation.
Tiger bought the food business for about 1.5 billion rand in 2012. “Sufficient capital will be injected into TBCG in order to stabilize the business and place it on a sustainable path,” Tiger said.
Tiger rallied as much as 10 percent and was 5.8 percent higher at 308.90 rand by 9:38 a.m. in Johannesburg, paring the drop this year to 16 percent.
- Aliko Dangote is Africa’s richest man, according to Forbes.
- Aliko Dangote’s net worth is $13.5 billion, according to the Bloomberg Billionaires Index.
Tiger Brands Limited (JSE: TBS) is a South African packaged goods company. The food conglomerate also has Tiger Brands direct and indirect interests in international food businesses in Chile, Zimbabwe, Nigeria (sold), Kenya and Cameroon.