The Company Secretary/Legal Adviser of Dangote Flour Plc, Aisha Ladi Isa has notified the Nigerian Stock Exchange (NSE), of the company’s change of name to Tiger Branded Consumer Goods Plc.
Advertisement
Tiger Brands said the short-term macro environment in Nigeria impacted its results and expressed its commitment to the Nigerian market.
This latest turn of events follows the October 8 announcement that Peter Matlare, the Tiger Brands Ltd chief executive officer (CEO), is stepping down on December 31.
According to Reuters, other directors that turned in their resignations alongside Africa’s richest man are Arnold Ekpe, Asue Ighodalo and Olakunle Alake.
“Tiger Brands has decided not to provide further financial support with respect to its investment in Tiger Branded Consumer Goods plc of Nigeria”, the company said in a statement.
“It is hard to say whether the share price movement is justified or not”.
“The market feels they are not throwing good money after bad”, he said.
Another analyst said the move would enhance Tiger Brands’ earnings. This purchase has cost investors millions in write-downs.
He also said that Tiger Brands should have been “more circumspect” in its approach to buying up the Nigerian assets. Shares in Tiger Brands, however, climbed 7.7 percent, putting them on course for their largest daily gain seven years.
In December previous year, the group also sold the Dangote Agrosacks packaging unit back to the Dangote Group for about R500m, saying it was noncore to business.
Advertisement
Tiger Brands’ other businesses in Nigeria, Deli Foods and UAC Foods, will not be affected by the review. Tiger Brands competes with Nestle Nigeria in Africa’s biggest economy.
