Business
10 years after buying 49% stake, Gala maker, Tiger Brands to divest from UAC
Co-producer of Gala sausage roll, Tiger Brands, has agreed to divest from UAC of Nigeria Plc (UACN).
The South African company decided to sell its 49 percent stake in UAC Foods Limited, one of the subsidiaries in UACN, 10 years after it first acquired the stake in the food and beverage business.
The 49 percent is a minority stake which gave Tiger Brands a license to produce and distribute selected products such as Gala sausage rolls, Supreme Ice Cream, and Swan water in Nigeria.
In a notice sent to the Nigerian Exchange Group on Saturday, Tiger Brands said the 49 percent stake would be sold to UACN in a buyback agreement expected to be sealed in September.
This is the second buyback deal involving Tiger Brands as the company had also sold its 67.5 percent in Dangote Flour Mills which was acquired in 2012.
READ ALSO: Berger Paints, UAC, Seplat and MTN Nigeria make Ripples Nigeria stocks-to-watch list
Dangote Group acquired the majority stake just three years after Tiger Brands had invested $200 million in the company.
The $76 million loan the company gave to Dangote Flour Mills was also written down.
The firm also sold its Deli Foods division in 2020.
This came just 10 years after it acquired a 100 percent stake in the unit following a dispute with its distributor, Benny, and Jolly Jus products.
Tiger Brands still operates in Cameroun, Ethiopia, Kenya, and Zimbabwe.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: In Kwara, multimillion-naira milk processing plant is abandoned, converted to a chicken outlet
After the government spent millions of naira to establish a milk processing plant in Kwara State that would provided jobs...
SPECIAL REPORT: For Sokoto communities, promise of healthcare is akin to death sentence
In this story, ABDULRASHEED HAMMAD delves into the dire realities of Primary Health Care services in Sokoto State, shedding light...
ICYMI…SPECIAL REPORT: NNPCL hides behind PIA to frustrate disclosure, accountability
Nigeria’s major oil company, Nigerian National Petroleum Corporation Limited (NNPCL), in what appears to be a common practice of disregard...
INVESTIGATION: Multi-million naira Ekiti resort center remains uncompleted a decade after
The multimillion-naira project, expected to comprise recreational buildings, now consists of cassava farmland, a bush used for excretion, and a...
SPECIAL REPORT: Torturous experiences of students with disabilities in Oyo tertiary institutions
For students with disabilities in Oyo state-owned tertiary institutions, learning is a torturous and distressing experience, considering the building structures...