Nov 21, 2017 Last Updated 10:19 AM, Nov 20, 2017

Tiger sells business back to Dangote

Aliko-Dangote1ABN – South Africa’s largest food producer Tiger Brands Ltd. has agreed to sell an indebted Nigerian business back to Dangote Industries Ltd. at a significant loss.

Having bought the 65.7% stake in Tiger Branded Consumer Goods Plc of Nigeria, formerly Dangote Flour Mills, from Dangote for US$200 million three years ago, Tiger will now return the stake for a nominal $1.

Dangote will put $50 million into the transferred company and also settle its debts, which amount to 5.6 billion naira (apx. US$28 million), including writing off the loans worth $46 million that it granted to the operation.

Tiger’s shares rallied by as much as 10% following the sale.

Dangote Industries is owned by Nigerian billionaire Aliko Dangote, who is Africa's richest man.

@ABNetworkOnline

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