Aliko Dangote, Africa’s richest man and Chairman, Dangote Group, has resigned from the board of Tiger Branded Consumer Goods Plc, formerly known as Dangote Flour Mills.
Mr. Dangote resigned alongside three other directors – Olakunle Alake, Asue Ighodalo and Arnold Ekpe, a former group managing director of Ecobank Transnational Incorporated.
Their resignation, announced late on Monday, followed the decision of the majority share owner, South African Tiger Brands, to reduce its financial support to the Nigerian subsidiary.
The South African fast consumer goods company, Tiger Brands, said in a notice to the Nigerian division, and received also by the Nigerian Stock Exchange, that they were exploring various options with regard to their investment in Dangote Flour Mills.
“Tiger Brands has decided not to provide further financial support with respect to its investment in Tiger Branded Consumer Goods Plc of Nigeria,” it said.
Tiger Brands board also announced that they were reviewing their investment in the business which was considered part of a broader strategy to expand in sub-Saharan Africa.
Dangote Flour Mills only recently changed its corporate name to Tiger Branded Consumer Goods Plc, following the acquisition of the majority shares by the South African company.
Aliko Dangote holds 10 percent of the company’s equity through Dangote Industries.
Sources close to the South African company said Tiger Brands decision followed their inability to make money from Dangote Flour Mills after committing about 200 million dollars or 65 per cent equity
in the Nigerian flour mill in 2013.
Tiger Brands also announced that the decision on the flour mill will not affect their other business interests in Nigeria.
Tiger Brands had written down the value of the Nigerian flour mill twice in 2014 for 66.3 million dollars amid stiff completion and sliding naira value.
Premium Times