VENTURES AFRICA – South Africa’s leading food company Tiger Brands and Dangote Group have agreed in principle for the former to acquire 63.35 percent stakes of Dangote Flour Mills (DFM).
Prior to the completion of the deal with Dangote Group, Tiger Brands had already notified and advised its shareholders on the deal in May.
However, while both parties have agreed on the deal, the transaction is still pending until the Nigeria Securities and Exchange Commission and Reserve Bank give approval.
“Should the SEC approve the proposed transaction and its terms‚ the parties intend to sign the share sale and purchase agreement‚” the company said.
The full terms of agreement are expected to be made available when the transaction is approved and the deals are signed.
The deal is part of Tiger Brands’ presence expansion project in Nigeria which was boosted in 2011 when the company bought Deli Foods, a food manufacturing company.
The company had also acquired 49 percent stake in UAC Foods Nigeria, a branded food products manufacturing company.
Dangote Flour Mills is owned by Africa’s richest man Aliko Dangote. Earlier in the year, the Nigerian billionaire industrialist had hinted on a proposed deal from Tiger Brands.