The richest man in Africa and the owner of Dangote Group, Mr. Aliko Dangote, is buying back his Dangote Flour Mills, for just one US dollar. He sold 65.7 per cent of the company to South Africa’s Tiger Brands in 2012 for $200 million dollars.
But since then, the South Africans, despite injection of millions of dollars have not made a dime in the company, which they rebranded only a few weeks ago, with Dangote and three other directors resigning from the board.
Now the South Africans are heading for the exit doors, after reaching a buyback deal with Dangote Industries.
South Africa’s Tiger Brands said today it would sell its stake to Dangote Industries Limited for just a $1.
Tiger Brands, South Africa’s biggest consumer foods maker, said Dangote Industries will give Tiger Brands an immediate cash injection of 0.7 billion rand ($46.1 million).
Tiger Brands will assume and settle the unit’s debt of 0.4 billion rand.
Tiger Brands has not made money from Tiger Branded Consumer Goods Plc of Nigeria (TBCG), formerly known as Dangote Flour Mills, since paying nearly $200 million for a 65 percent stake in the firm three years ago. [DAN]