Tiger Brands Ltd. (TBS), South Africa’s largest food company, said it reached agreement in principle to buy a 63.4 percent stake in Dangote Flour Mills Plc (DANGFLOU) of Nigeria from Dangote Industries Ltd recently.
The deal has been submitted to Nigeria’s Securities and Exchange Commission for approval and further details will be released following go-ahead from the SEC, the companies said.
Dangote Flour Mills which is currently owned by Dangote Industries Limited is owned by Nigerian billionaire, Aliko Dangote.
Tiger brands which also owns Deli Foods Nigeria and has a 49% stake in UAC Foods intends to leverage its recent acquisition to expand its presence in Nigeria. The company intends to increase revenue from its operations outside South Africa to 30 percent of total sales over the next 5 to 10 years.