Tiger Brands of South Africa reaches Agreement to Acquire major stake in Dangote Flour
After several months of speculation, Dangote Flour has announced that it will sell a majority stake of its shareholdings to Tiger Brands of South Africa. The deal is subject to Securities and Exchange Commission (SEC) approval, however most observers expect that to be obtained in due course.
Dangote Flour released the following information to the Nigerian Stock Exchange earlier today:
“Dangote Flour Mills (“DFM”) Plc has notified The Exchange that in furtherance to its earlier announcement, the company is aware that its majority shareholder Dangote Industries Limited (“DIL”) and Tiger Brands Limited (“Tiger”) have reached an agreement in principle regarding the terms of a potential transaction that would, if implemented, result in Tiger’s acquisition of 63.35% 0f DFM’s issued capital. The proposed share sale and purchase agreement (“SSPA”) has been submitted to the Securities and Exchange Commission (SEC) for approval.
Whenever SEC approves the terms and conditions of the SSPA, DIL and Tiger intend to execute the SSPA and upon fulfillment of all conditions precedent, Tiger Brands will become the majority shareholder in Dangote Flour Mills Plc.”