Tiger Brands has accepted Kirubi’s offer to buy the company’s 51% holding in Haco.
In 2008 Tiger Brands acquired its stake in Haco. The joint venture allowed Haco to expand into the foods category, specifically food manufacturing.
|Lawrence Mac Dougall, Tiger Brands chief executive officer.|
“The review evaluated the Haco business in the context of its mutual alignment with Tiger Brands’ long-term strategic focus and core competencies,” said Lawrence Mac Dougall, Tiger Brands chief executive officer. “In addition to products manufactured and marketed by Haco under its own brands, the majority of Haco’s business lies in the manufacturing and distribution of products under license. This is not aligned with our current operating model, which is premised on full ownership of leading FMCG brands.”
The agreement relating to the disposal of the shares is subject to a number of suspensive conditions, including receipt of the necessary regulatory approvals in Kenya.
“The recent decisions to dispose of our interest in Haco and East African Tiger Brands Industries should not be viewed as a withdrawal from Africa,” MacDougall said. “Rather, growth outside of South Africa will be based on refocusing our business on core categories and competencies. The intention with the renewed international strategy is for it to be accretive to domestic performance.”
The impact of the Haco transaction on Tiger Brands’ earnings, headline earnings and net asset value per share will not be material.
Tiger Brands is an African manufacturer of branded food, home and personal care products. In South Africa, it has market shares across a broad range of categories. Its divisions include: grains, consumer, international and exports. Tiger Brands employees approximately 21,474 employees across Africa.