According to VENTURES AFRICA, South
Africa’s largest food company, Tiger Brands announced through its Nigerian
financial advisor, Vetiva Capital that it is ready to step-up its stake in
Nigeria’s Dangote Flour Mills (DFM) to 70 percent by purchasing ordinary shares
worth 332.5 million at N9.50 ($0.06) per share.
Tiger Brands initially bought 63.35
percent from Dangote for $181.9 million in 2012. The company, which has 49
percent stake in UAC of Nigeria Plc, also acquired Deli Foods Nigeria Limited
raising concerns of market monopoly especially when the Securities and Exchange
Commissions (SEC) approved the transaction.
“DFM is a market leader in both the
flour and pasta market segment of the Nigerian consumer food sector with strong
branding, production and distribution capabilities,” the Company said. Probably
the sole reason why Tiger Brands is buying into the company, as it believes it
will enhance its existing businesses in Nigeria and increases its opportunities
in the food market
The decision to start the process of
increasing its stake to 70 percent indicates that the South African food
company is confident of its investment in the Nigerian market despite recording
some setbacks after the first acquisition.
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