Unit shares up on deal to sell stake to DIL

Pulse Staff 09:54 - 14 December 2015

The Nigerian Stock Exchange building (image used for illustration) [Reuters/Akintunde Akinleye]

The shares, which had lost 75 percent of their value this year, rose to 1.26 naira in early trades. They fell 56 percent last year.

Shares in Tiger Brands' Nigerian unit jumped 9.6 percent in early Monday trades on the Lagos bourse after the South African food company said it had agreed a deal to sell its majority stake back to Dangote Industries Limited.

Tiger Brands has not made money from Dangote Flour Mills (DFM) since paying nearly $200 million for a 65 percent stake in the firm, acquired from Dangote Industries Ltd, three years ago as part of broader strategy to expand in sub-Saharan Africa.