Tiger Brand Limited has announced on Monday morning it has agreed to sell back its 49% stake in UAC Foods Limited (UACF), to its partner UAC of Nigeria Plc (UACN), which holds the remaining 51%. Following a detailed review of the Nigerian business of UACF, including an assessment of UACF’s core categories in the context of Tiger Brands’ long-term strategic focus and primary competencies, it was decided that UACF would be better positioned under the full control of UACN.
Tiger Brands still believes there is significant potential for the group in the Nigerian market and will be exploring ways to maximise on these opportunities post the sale.
This transaction is expected to be formally closed by the 1st September 2021 and the impact this will have on headline earnings per share and the net asset value per share will be immaterial.
Tiger Brands was trading 0.40% higher at R184.49 per share during the afternoon trade.