According to reports, the former Dangote Flour Mills (DFM) Plc, now rebranded Tiger Branded Consumer Goods (TBCG) Plc, is set to return to its former name and its founding majority shareholder, Aliko Dangote’s Dangote Industries Limited DIL.
Sources privy to the development said regulatory authorities in Nigeria and South Africa have approved the deal between TBCG’s majority core investor, South Africa’s Tiger Brand and the second major shareholder, DIL to sell Tiger Brands’ majority equity stake to DIL.
Dangote Group’s DIL had in 2012 sold 63.35 of its equity stake in DFM to Tiger Brands in a $181.9 million deal. The deal saw transfer of 3.17 billion ordinary shares out of Dangote Group’s 3.67 billion ordinary shares of 50 kobo each in DFM to the Tigers Brand. The deal then was approximately valued at more than N28 billion, according to prevailing exchange rate.
After nearly four years of successive losses and impairing of assets, Tiger Brands reached agreement with DIL on December 11, 2015 to resell the troubled flour-milling company to DIL.
The sources said the Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator; Nigerian Stock Exchange (NSE), where TBCG is listed and all necessary South African regulatory agencies have approved the deal.
The sources indicated that the transfer of the shares of TBCG from Tiger Brands to DIL would soon be done through the negotiated cross over window of the Nigerian Stock Exchange (NSE).
The transfer of shares would subsequently be followed by the return of the company to its former name, which many stakeholders consider to be a stronger brand than the current name.
