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Dangote Resigns, As Tiger Brands Labels Its Investment in Nigeria As a Wrong Move

by on November 17, 2015
 
Aliko Dangote and three other directors have resigned from the board of Dangote Flour Mills as the majority owner, Tiger Brands has cut funding support to its struggling Nigerian division.  The decision by South Africa’s Tiger Brands to review its investment in Nigeria was taken after it realized that Investing in Nigeria was a wrong move.  Investigation reveals that Aliko Dangote and three Others were forced to resign.
According to reports, Tiger Brands has not made money from Dangote Flour Mills since paying nearly $200 million for a 65 percent stake in the firm in 2013 as part of its expansion into sub-Saharan Africa.
“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 issued.
Aliko Dangote, whose conglomerate holds a 10 percent equity stake in DFM resigned along with three other directors, following Tiger Brands’ announcement.
Tiger Brands wrote down the value of DFM twice last year for a total of $66.3 million as the business suffered from tough competition and a weakening naira currency.
Tiger Brands’ other businesses in Nigeria, Deli Foods and UAC Foods, will not be affected by the review.

Omolara Adegoke- Abuja

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