Tiger Brands, the South African investor that bought over majority stake in Dangote Flour few years ago has reached an agreement with Dangote on the future of its loss-making Nigerian unit. Tiger Brands will sell its 65.7% shareholding in Tiger Branded Consumer Goods (TBCG) of Nigeria to Dangote Industries for $1 and write off its shareholder loans to TBCG with an approximate value of R700m, it said on Monday.
Tiger Brands will also settle outstanding debt of R400m. It has withdrawn its cautionary announcement. Tiger Brands acquired 65% of Dangote Flour Mills for R1.6bn in 2012 from the Dangote conglomerate, which is closely held by businessman Aliko Dangote, and rebranded it Tiger Branded Consumer Goods.
In late November this year the company said it would no longer fund the loss-making venture and would make write-downs of nearly R1.9bn as a result.