The bid by Dangote Industries Limited (DIL) to buy Tiger Brands Nigeria, has been sealed as Tiger Brands, yesterday, announced that it had agreed to sell its 65.7 per cent shareholding in its Nigerian unit, Tiger Branded Consumer Goods (TBCG), to DIL for a nominal $1.
In a statement released by TBCG yesterday, the firm said DIL would provide TBCG with an immediate cash injection of approximately R700-million, sufficient capital “to stabilise the business and place it on a sustainable path”.
In return, Tiger would sell its 65.7 per cent shareholding in TBCG to DIL for $1 and write off around R700-million in shareholder loans and settle TBCG debt to the tune of another R400-million.
The transaction, the statement said is subject to regulatory approvals and would “ensure that TBCG is maintained as a viable going concern, able to retain its employees and meet its obligations to its stakeholders”.
Tiger Brands, which had been facing financial challenges, said last month that it had decided to stop funding the loss-making unit and opted for the sale of the unit. -Leaderhip