Tiger Brands wants 70% stake in Dangote Flour Mills
Tiger Brands Limited wants to increase seeks to increase its stake in Dangote Flour Mills (DFM) to 70 percent.
The company, which currently holds 63.35 percent in the Nigerian flour miller, is a leading South African food company.
It indicated interest in a recent filling with the Nigerian Stock Exchange in buying an additional 332.5 million ordinary shares of 50 kobo each at N9.50 per share from minority shareholders to bring its stake to 70 per cent.
Under the plan, which was mooted at the time of the initial deal, Dangote Group will retain a 10 percent, Tiger Brands 70 percent, while other investors will have 20 percent.
Following the earlier acquisition of the 63.3 percent, the CEO of Tiger Brands, Mr. Peter Matlare, said he was 'pleased with the successful conclusion' of the transaction, saying it would present growth opportunities for both organisations.
He said the company would 'go up to a maximum of 70 percent in total, leaving the balance in Nigerian hands.'
DFM is a subsidiary of Dangote Group which is owned by Africa's richest man, Alhaji Aliko Dangote.
Dangote Flour Mills has been grappling with declining revenue turnovers in recent times, posting a loss of N3.8 billion ($26.8 million) for the first half of 2013 to June 30.
Responding to why he sold the giant stake, Dangote explained that the decision was in furtherance of the Group's optimisation and diversification objectives.