Company to sell stake in Nigerian unit to Dangote Industries

Pulse Staff 06:33 - 14 December 2015

A worker operates a bag-sealing machine at the Dangote flour mill in Apapa district in Nigeria's commercial capital of Lagos November 13, 2010. REUTERS/Akintunde Akinleye

Tiger Brands has not made money from Tiger Branded Consumer Goods Plc of Nigeria (TBCG), formerly known as Dangote Flour Mills, since paying nearly $200 million for a 65 percent stake in the firm three years ago.

South Africa's Tiger Brands said it would sell its 65.7 percent stake in its loss making Nigerian division to Dangote Industries Limited for $46.1.

Tiger Brands, South Africa's biggest consumer foods maker, said Dangote Industries will give Tiger Brands an immediate cash injection of 0.7 billion rand ($46.1 million).

Tiger Brands will assume and settle the unit's debt of 0.4 billion rand.

($1 = 15.1914 rand)