Tiger Brands Ltd., South Africa’s largest food company, said it reached agreement in principle to buy a 63.4 percent stake in Dangote Flour Mills Plc of Nigeria from Dangote Industries Ltd.
The food producers have submitted the proposed deal to Nigeria’s Securities and Exchange Commission for approval, according to a joint statement to JSE Ltd., the operator of South Africa’s bourse, where Tiger Brands is listed.
Tiger, based in Johannesburg, will release full details after receiving the go-ahead from the SEC, the companies said.
Dangote Flour Mills is listed on the Nigerian Stock Exchange, with 73.4 percent of the stock held by Dangote Industries Ltd., according to data compiled by Bloomberg. Dangote Industries is closely held by Nigerian billionaire Aliko Dangote, who is also president of the West African nation’s Lagos-based bourse.
Tiger Brands wants to expand into Africa to increase revenue from its operations outside South Africa to 30 percent of total sales over the next five to 10 years as the home market slows, Chief Executive Officer Peter Matlare said on May 22.