Tiger Brands, a South African consumer goods firm with a broad brand portfolio, is reported to be selling its struggling Nigerian venture to Dangote Industries as a result of nearly $120 million in write-downs.
According to Fast Moving, Tiger Brands bought two-thirds of a stake in Dangote Flour Mills for almost $200 million from Aliko Dangote, however growing competition and currency devaluations saw the venture run into trouble.
The Daily Mail reports that Dangote Industries is set to provide a cash injection of $46.1 million and added that Tiger Brands would assume and settle the brand’s debt.
Peter Matlare, outgoing CEO, is reported as saying: “We spent a bucket load of cash and shareholders are clearly upset. We had to revise the strategy and how it should look”.
Mr Matlare is said to be stepping down at the end of the year after eight years in charge.
Source: Fast Moving / This Day Llive / The Daily Mail