DIL announced in Lagos the business deal worth $181.9 million which included the sale of its 3,167,716,667 ordinary shares out of the Group's 3,667,716,667 ordinary shares in DFM to Tiger Brands.
The transaction, which has been endorsed by the board and shareholders of DIL as well as regulatory authorities, provides for Alhaji Aliko Dangote, president/chief executive of the Group, to retain his chairmanship of the board of DFM.
“The executed share sales purchase agreement (SSPA), which articulates the terms under which the sale was consummated with Tiger Brands, provides that DIL will retain a strategic interest of 10% of the total issued ordinary share capital of DFM for a minimum period of five years after implementation of the transaction during which the Group will have the right to appoint two directors to the board of DFM, with Alhaji Aliko Dangote continuing as chairman of the company,” the Group said.
Dangote Group said the sale is part of its on-going optimization/diversification objective and relates specifically to its going forward strategies for DFM (its subsidiary company in the Food Products segment of the Nigerian Consumer Goods sector), involving a strategic partnership arrangement that transcends the operations and control of the company focused on maximizing the business case and plan for DFM, and consequently delivering long term value for shareholders of the Company.
Tiger Brands, based in Sandton, South Africa, operates primarily in South Africa and selected emerging markets. It has significant presence in over 28 countries on the African continent with business offerings spanning grains and consumer brands.