Abuja - The sale of 63.5 per cent equity stake in Dangote Flour Mills Plc (DFM) by Dangote Industries Limited (DIL) to Tiger Brands Limited of South Africa was Thursday consummated on the floor of the Nigerian Stock Exchange (NSE).
This followed the trading of about 3.171 billion shares of DFM representing about 63.4 per cent of the paid-up shares of the company for N30.125 billion in 94 deals on the floor of the Exchange.
The transaction involved the shares sold to Tiger Brands, even as a source close to DIL confirmed that the final agreement was signed by all the parties to the deal in Lagos yesterday.
Tiger Brands, which is a leading South African Fast Moving Consumer Goods Company (FMCG) company and Dangote Industries Limited (DIL), recently confirmed that the acquisition had been approved by the Securities and Exchange Commission (SEC).
DIL said the divestment was in line with its strategic move to streamline its operations to maintain leadership, while Tiger Brands said the 63.5 per cent stake would enable it consolidate its growing business interest in Nigeria.
DIL had noted that the transaction would still allow Aliko Dangote, to retain his chairmanship of the Board of the DFM.
On the other hand, Tiger Brands explained that the transaction would substantially add scale to its existing Nigerian businesses and strategically positions the company to take advantage of the market opportunities within the Nigerian milling sector and related essential food categories.
DFM will be Tiger Brands’ third and largest acquisition in Nigeria, following the acquisition of 100 per cent of biscuit manufacturer, Deli Foods Nigeria Limited and the acquisition of a 49 per cent joint venture interest in UAC of Nigeria Plc’s food and beverage businesses in 2011.
Meanwhile, trading at the stock market remained bullish with the NSE All-Share Index rising by 1.00 per cent to close at 26,448.61, while market capitalisation added N83.1 billion to close at N8.421 trillion.