South African packaged goods company Tiger Brands is disposing of its 49% shareholding in UAC Foods (UACF) to its partner UACF Nigeria (UACN), which already holds the remaining 51% of the company.
Following a detailed review, Tiger Brands found that UACF would be “better positioned” under the full ownership of UACN, which culminated in UACN agreeing to acquire Tiger Brands’ shareholding in UACF.
Binding agreements have been concluded to give effect to the transaction, which is expected to be formally closed on September 1.
In the interim, Tiger Brands said that Nigeria still holds “significant potential” for the company and that “options would be explored” after the closing of the transaction to maximise opportunities in relevant categories.
The impact of the transaction on Tiger Brands’ earnings, headline earnings and net asset value a share will not be material, the company said on August 30.