South Africa-based foods company Tiger Brands, who recently completed a 63.3 percent stake acquisition of the $150 million-valued Dangote Flour Mills Plc (DFM), may be up for more stakes as reports indicate plans to buy off minority shareholders in the company.
Nigerian newspaper THISDAY, disclosed that a reliable stock market source said: “We see a tender offer coming but we cannot say the exact time. However, it is very certain that Tiger Brands would want to settle the minority shareholders and be in total control of DFM.”
Dangote Group, a conglomerate owned by Africa’s richest man, Alhaji Aliko Dangote, had last week concluded the sale of 63.3 percent of its flour mills stake to Tiger Brands, retaining only 10 percent and leaving a 26.7 percent holding shared amongst diversified minority shareholders.
However, Aliko Dangote would remain as chairman of the DFM.
The aggressive expansion strategy of the South African food company, which earlier acquired a 100 percent take over of Nigerian biscuit maker, Deli Foods for 296.3 million rand ($34 million), seelks to leverage on the Dangote acquisition and substantially scale up its Nigerian operations, providing strategic advantage for market opportunities in the Nigerian milling sector and food and beverage production.
Tiger Brands is the largest food company in the continent’s largest economy, South Africa and has presence in Cameroun, Kenya, Chile and now Nigeria.