JOHANNESBURG, SOUTH AFRICA — The board of directors of Tiger Brands announced on June 9 it plans to sell its 51% stake of East African Tiger Brand Industries  (EATBI) to its partner East Africa Group PLC (EAG), which currently owns a 49% stake of EATBI.

Together, both companies reviewed of EATBI’s core categories in context to Tiger Brands’ long-term strategic focus and primary competencies, and decided that EATBI would be better positioned under the ownership of EAG. This process culminated in EAG making an offer for Tiger Brands’ 51% shareholding at a price that was considered “fair and reasonable.”

Ethiopia remains a market of significant potential and options will be explored to maximize opportunities in relevant product categories, Tiger Brands said.

The impact of the transaction on Tiger Brands’ earnings, headline earnings and net asset value per share will not be material.

The agreement is subject to regulatory approvals by EAG in Ethiopia. The transaction is expected to close no later than November.

A further announcement will be made once the transaction has been concluded. The
transaction is below the JSE Listings Requirements Thresholds and is disclosed for information purposes only.

EATBI manufactures a broad range of consumer goods including pasta, macaroni and flour; soaps and detergents; and packaging materials.

This sale follows Tiger Brands sale of its 65.7% stake of its flour mill business in December 2015 to Dangote Industries Limited which enabled them to write off R700 million ($47 million) in shareholders loans and settle other outstanding TBCG debt of R400 million.