AFRICA: Nigeria: SEC Approves South African Firm to Acquire 63 Percent of Dangote Flour

The Securities and Exchange Commission and The Nigerian Stock Exchange have approved the acquisition of 63.3 percent of Dangote Flour Mills Plc by a South African consumer goods firm, the Tiger Brands, Dangote Group said yesterday in an advertorial.

The deal was done under a Share Sale and Purchase Agreement which involves the sale of 3, 167, 716, 667 ordinary shares to Tiger Brands Limited out of the Dangote Industries Limited's 3, 667, 716, 667 ordinary shares of 50 kobo each in Dangote Flour Mills Plc.

Dangote Industries Limited will retain a strategic interest of 10 percent of the total issued ordinary share capital of Dangote Flour Mill for a minimum period of five years after implementation of the transaction.

After this, the Group will have the right to appoint two directors to the Board of Dangote Flour, with Alhaji Aliko Dangote continuing as the chairman of the company.

The deal is Tiger Brands' third and the biggest yet in Nigeria, which is seen as a growth area for consumer and food products.

"Tiger Brands believes, particularly for consumer goods, that the potential of the Nigerian market is significant," the company said in a statement.

The company is the second largest flour milling company in Nigeria with a market share of about 30 percent. It also has about 40 percent of the country's pasta market.

Tiger Brands has been ramping up its expansion in fast-growing African markets and last year increased its footprint outside its home base with acquisitions in Nigeria and Ethiopia.

Dangote Industries Limited is a leading diversified business conglomerate established in May 1981, with business activities spanning cement, sugar, salt, flour and semolina, pasta, noodles, poly products, logistics and real estate.

Tiger Brands Limited is a branded fast-moving consumer packaged goods based in Sandton, South Africa and operating primarily in South Africa and selected emerging markets. It has significant presence in over 28 countries in Africa with business offerings spanning grains, consumer brands among others.