Tiger Brands Signs Pact With Dangote to Acquire Shares In Dangote Flour Mills
South Africa giant, Tiger Brands Limited, following an earlier indication to acquire a shareholding in one of Dangote industries subsidiaries has announced that it has reached an agreement in principles with Dangote Industries Limited to acquire 63.35% of the total ordinary issued share capital of Dangote Flour Mills Plc, a public company, listed on the Nigerian Stock Exchange.
In a statement by the company, it said the proposed terms of the Potential Transaction are encapsulated in a share sale and purchase agreement (‘SSPA’), which has been presented to the Securities and Exchange Commission for consideration and approval in accordance with the regulatory requirements in Nigeria.
Before the Parties are able to sign the SSPA, the Potential Transaction and its terms have to be considered and approved by the SEC, in accordance with the regulatory requirements in Nigeria.”
The Potential Transaction upon the approval of SEC will lead to both parties signing the SSPA and the consumation of the deal.
“Upon signature by the parties of the SSPA, Tiger Brands will release a full announcement regarding the terms of the Potential Transaction; implementation of the Potential Transaction will be subject to the fulfilment of certain conditions precedent, including approval of the Exchange Control Division of the South African Reserve Bank,” the statement said.
The company then advised its shareholders to continue to exercise caution when dealing in the Company’s securities until a further, more detailed announcement is made.