On Monday July 25 2016, Dangote Flour Mills, which changed its name in the middle of 2015 to Tiger Brand Consumer Goods, obtained a new certificate of incorporation from the Corporate Affairs Commission bearing its former name: Dangote Flour Mills. It has also implemented the name change on both the Nigerian Stock Exchange and the Central Securities Clearing System. This comes three months after Dangote announced that it would be making changes to Dangote Flour Mills, which it purchased in December last year.

In December 2015, South Africa’s Tiger Brands sold its 65.7 percent stake in Flour Mills back to Dangote at $1 per share. This came three years after the company acquired Flour Mills from Dangote at the cost of $200 million in an investment the company unfortunately lost. In the deal, Tiger Brands received an immediate cash injection of $46.1million and took ownership of a debt of about $26.3 million.

What you didn’t know about the deal between Tiger Brands and Dangote

On the 25th of September 2012, both companies announced that they had just concluded a transaction, which resulted in Tiger Brands acquiring a 63.35 percent shareholding in Dangote Flour Mills Plc. for approximately R1.5billion. According to the agreement, Dangote retained a strategic interest of 10 percent in the company for a minimum period of five years, with Aliko Dangote continuing as Chairman of Dangote Flour Mills.

In 2015, Peter Matlare, CEO of Tiger Brands, admitted that his company failed in the assessment of the ways of doing business in Nigeria, as well as the competition in the country.

Months after the Nigerian acquisition, the South African company increased its stake to about 70 percent. However, in the first year after investing in this deal, Dangote Flour Mills reported a loss of $40.5 million while in 2014 it also reported a loss of $34.3 million.

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