South African consumer goods firm Tiger Brands has reached a deal to buy a majority stake in Nigerian flour and pasta maker Dangoteis.
In a stock exchange announcement yesterday (4 July), Tiger Brands said, if implemented, the transaction would result in the company purchasing a 63.35% stake in the listed company.
Further details on the deal are expected when it receives regulatory clearance.
The deal appears to be part of Tiger Brands’ expansion in Nigeria which was boosted in 2011 when the company bought food manufacturing company Deli Foods. The company also owns a 49% stake in UAC Foods Nigeria, a branded food products manufacturing company.
In May, the firm’s CEO Peter Matlare said the company was looking to expand into Africa to increase revenue from its operations outside South Africa to 30% of total sales over the next five to ten years as the home market slows, Bloomberg has said.