Sept. 25 (Bloomberg) -- Dangote Flour Mills Plc, a Nigerian producer, climbed to the highest in more than a year after Tiger Brands Ltd. of South Africa received approval for a plan to buy a majority stake in the company.
Dangote Flour advanced 5 percent to 8.48 naira, the highest level since Sept. 5, 2011, at the close in Lagos, the commercial capital.
Tiger Brands, South Africa’s largest food company, got approval from Nigeria’s Securities & Exchange Commission to pay 30.1 billion naira ($190 million) for a majority stake in Dangote Flour from Dangote Industries Ltd., owned by billionaire Aliko Dangote, Africa’s richest man.
Tiger will pay 9.50 naira a share in cash on Oct. 1 to acquire 63.35 percent of the flour mills business, the Johannesburg-based company said in a statement today. Dangote Flour has 30 percent market share in flour and 40 percent in pasta in the West African nation, it said.
Dangote Flour is Tiger’s third acquisition in Nigeria since April 2011, according to the statement. Tiger wants to increase revenue from outside South Africa to 30 percent over the next five to 10 years, Chief Executive Officer Peter Matlare said on May 22.
The Lagos-based company’s stock has surged 70 percent this year, compared with the 26 percent gain by the Nigerian Stock Exchange All Share Index.
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