Monday, 28 December 2015

AFRICA’S RICHEST MAN, ALIKO DANGOTE, BUYS BACK TIGER BRANDED CONSUMER GOODS PLC

Alhaji Aliko Dangote
The richest man in Africa, Alhaji Dr. Aliko Dangote, has revealed that the decision of his company, Dangote Industries Limited, to buy back its former subsidiary, Tiger Branded Consumer Goods Plc (TBCG) was taken in order to preclude the company from going under and save over 3,000 jobs of Nigerians.

Tectono Business Review gathered that Alhaji Dangote and Dangote Industries were approached by Tiger Brands to acquire its 65.7 per cent shares of TBCG. While some stakeholders have questioned the rationale behind the investment decision by Alhaji Dangote, sources close to the Dangote Group said the company had to consider the repurchase of TBCG so as to keep the company as a going concern, which preserves value for the minority retail shareholders. The move also secured direct employment for over 3,000 employees.

A market operator said: “Going by every indication, the future of the company was very doubtful and that was risky for the employees which are over 3,000 Nigerians apart from others who benefit from the company’s services through other ancillary services. The return of DIL is therefore a big relief and good decision to save the jobs of the staff of TBCG.”

We learnt that according to the repurchase agreement, subject to regulatory approvals, Dangote Industries would provide TBCG with an immediate cash injection of N10 billion. In return, Tiger Brands will divest its 65.7 per cent shareholding in TBCG to Dangote Industries for a nominal consideration and write off its shareholder loans to TBCG. In addition, Tiger Brands will assume and settle outstanding debt guaranteed on behalf of TBCG.

According to a very reliable source, the former directors of TBCG, Alake, Ekpe and Ighodalo
have agreed to re-join the board of TBCG.