Dangote takes over Tiger Branded Consumer Goods

To revert to Dangote Flour Mills

Alhaji Aliko Dangote’s Dangote Industries Limited (DIL) has acquired 65.6 per cent majority equity stake in the former Dangote Flour Mills Plc, now rebranded Tiger Branded Consumer Goods (TBCG) Plc, from Tiger Brands Limited, the South African core investors.

A cross deal for the transfer of more than 3.28 billion ordinary shares of 50 kobo each of TBCG from Tiger Brands Limited to DIL was struck on Monday at the Nigerian Stock Exchange (NSE). The cross deal was struck through the negotiated cross deal window of the NSE at N1.24 per share.

The negotiated cross deal implies that the buyer and the seller had agreed on the transaction and came to the stock market for formalization of the transaction. Negotiated window at the Exchange is usually used for large-volume and block divestment and it allows the consummated price and charges to be lower than the prevailing market rates.

TBCG’s issued share capital currently stands at five billion shares, indicating that the transferred 3.28 billion shares represents 65.6 per cent of the current issued share capital.

The Nation two weeks ago exclusively reported approval of the acquisition by Nigerian and South Africa authorities.

Dangote Group’s DIL had in 2012 sold 63.35 of its equity stake in DFM to Tiger Brands in a $181.9 million deal. The deal saw transfer of 3.17 billion ordinary shares out of Dangote Group’s 3.67 billion ordinary shares of 50 kobo each in DFM to the Tigers Brand. The deal then was approximately valued at more than N28 billion, according to prevailing exchange rate.

After nearly four years of successive losses and impairing of assets, Tiger Brands reached agreement with DIL on December 11, 2015 to resell the troubled flour-milling company to DIL.

Sources had confirmed to The Nation that the Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator; Nigerian Stock Exchange (NSE), where TBCG is listed and all necessary South African regulatory agencies have approved the deal.

The Nation had reported that the transfer of the shares of TBCG from Tiger Brands to DIL would soon be done through the negotiated cross over window of the Nigerian Stock Exchange (NSE). The transfer of shares would subsequently be followed by the return of the company to its former name, which many stakeholders consider to be a stronger brand than the current name. The Dangote Group is the most capitalised quoted business group in Nigeria with four major companies, including Dangote Cement, cement; Nascon Allied Industry, salt; Dangote Sugar Refinery, sugar; and TBCG, flour. It has several unquoted subsidiaries that are involved oil and gas, telecommunications, fruit drinks and transportation among others.

The Nation in late December 2015 also exclusively reported the details of the acquisition deal. Under the deal, Tiger Brands Limited, South Africa’s largest food company, would divest its shareholding to Dangote Industries Limited (DIL), the holding company of Africa’s richest man, Alhaji Aliko Dangote.

A report obtained by The Nation, which outlined the key details of the Share Sale Purchase Agreement (SSPA), indicated that Tiger Brands will transfer and sell its 65.66 per cent majority equity stake in TBCG to DIL for a nominal consideration of $1. The South African majority core investor will also absorb N15.76 billion in debts.

It was the first report to outline the key financial considerations of the acquisition. TBCG has five billion ordinary shares of 50 kobo each with market capitalisation of about N5.9 billion.

In consideration for the transfer of the 65.66 per cent equity stake to DIL, DIL will inject N10 billion in form of a convertible shareholder’s loan into TBCG in January 2016. The convertible loan implies that DIL, at its option, will automatically have higher majority equity stake whenever it decides to exercise its convertible option.

“Tiger Brands Limited will transfer/sell its shares (3,283,277,052) to Dangote Industries Limited for a nominal amount ($1) in consideration for Dangote Industries Limited injecting N10 billion in January in the form of a convertible (at lender’s option) shareholders’ loan,” according to the report.

Besides, “Tiger Brands Limited’s loan to TBCG of N10.25 billion will be extinguished by way of debt forgiveness to the company” and “Tiger Brands Limited will assume the Stanbic IBTC debt of N5.51 billion and pay up the outstanding amount due to the bank”.


Minister, Oil Sector Stakeholders to Meet Over Low Oil Price


The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu and other industry stakeholders will convene in Abuja next month to provide insights into the way forward for the Nigerian oil and gas industry amid the low oil price environment. The minister had confirmed his participation as the guest of honour and host minister at the 25th edition of its Annual Oloibiri Lecture Series and Energy Forum taking place on March 3, 2016.

According to the Chairman, SPE Nigeria Council, Mr. George Kalu, this year’s edition would bring together experienced exploration and production industry experts, who would provide insights into how to advance Nigeria’s oil and gas activities to mitigate the effect of low oil prices and chart the right course towards sustainable future for the industry.

The E&P executives that will speak at the event are the Managing Director/Chief Executive Officer, First E&P Development Company, Mr. Ademola Adeyemi-Bero; the Director, Department of Petroleum Resources, Mr. Modecai Baba-Ladan; the Managing Director, Shell Nigeria Exploration and Production Company, Mr. Bayo Ojulari; the Managing Director, ExxonMobil Nigeria, Mr. Nolan O’Neal; the Group Executive Director, E&P NNPC, Dr. Maikanti Baru, and the Chairman, PETAN and Managing Director, Oildata Inc., Mr. Emeka Ene

Naira already devalued, 28 professional associations insist

The naira is already devalued whether the President Muhammadu Buhari-led Federal Government accepts it officially or not, 28 professional associations registered in the country have said.

According to the Association of Professional Bodies of Nigeria, the naira has depreciated significantly against the United States dollar at the parallel market regardless of the President’s recent stance on the matter.

The APBN is comprised of notable associations like the Institute of Chartered Accountants of Nigeria, Chartered Institute of Bankers of Nigeria, Nigeria Institute of Management, Nigeria Society of Engineers, Nigeria Medical Association, Nigeria Bar Association, and Chartered Institute of Stockbrokers.

The President and Chairman of Council/Board, APBN, Mr. Foluso Fasoto, said in his address at the board meeting in Abuja that the economy was under pressure due to the exchange rate surge at the parallel market.

Speaking to journalists after the meeting, he said it was high time the Federal Government did something strategic about the ailing naira as the situation was “highly impacting negatively on businesses across the country.”

He dismissed claims by the Federal Government that the naira was not devalued, stressing that the market value of the naira was enough reason to show that it had already been devalued.

Buhari had last week Saturday reiterated his opposition to the devaluation of the naira, on the grounds that Nigeria could not compete with developed countries which produce to compete among themselves and could afford to devalue their local currencies.

But Fasoto argued that whether the President wanted it or not, the currency had been devalued.

He said, “Whether the government likes it or not, the naira is currently devalued. What the government is just trying to guard against is not to lose control over the valuation of naira. However, the fact right now is that the naira is already devalued but it has not gotten an official nod, whereas based on market realities our local currency has depreciated.

“Therefore, whether we like it or not the naira has gotten the market nod in terms of its devaluation. How can you say it has not been devalued when majority of forex seekers pay over N345 for a dollar? And if it continues in this trend, it may collapse to N1,000 to a dollar whether the government accepts to officially devalue it or not.”

On how to curb a further fall of the naira, the professional bodies urged Nigerians to patronise locally-made products.

Fasoto said, “We must increase our productivity and Nigerians must be interested in buying Nigerian made goods if we must check this collapse of the naira. When this is achieved, the quality of our products will be enhanced.

“Also, the Nigerian government should provide enabling environment for the manufacturers and to emerging businesses so that they can ensure that Nigeria becomes a very productive country. Therefore there’s no point arguing it for the naira is already devalued.

“The only thing that seem to counter and it is just that the government has not said it officially. But on the market arena, our local currency is already devalued.”


N/Delta: Chevron, IITA partner to train 40 youths in agriculture

A female farmer

Chevron Nigeria Limited (CNL)and International Institute of Tropical Agriculture (IITA) Ibadan, had concluded arrangement to train 40 youths from the Niger Delta region in agriculture.

Mr Deji Haastrup, General Manager, Government and Public Affairs of Chevron, disclosed this on Thursday in Warri at an event to kick-start the programme.

Haastrup said that the youths would be trained on aquaculture, cassava, plantain, banana production and processing.

He said the programme tagged ‘’Agropreneurship’’ would offer an opportunity for large scale employment leading to self-reliance.

”The pilot programme incorporates young people from the Egbema-Gbaramatu Communities Development Foundation and the Itsekiri Regional Development Committee.

”Other parties that are collaborating with CNL and IITA are the Delta Government and the Foundation for Partnership Initiatives in the Niger Delta (PIND),” he said.

Haastrup said the current programme would gulp about N188million.

He said that CNL would continue to support the people of Niger Delta with a view to making life meaningful for them.

Mrs Clementina Arubi, representative of the General Manager, NNPC-NAPIMS, stressed the need for economic diversification through other ventures, especially agriculture rather than over-dependence on oil.

Also, Mr Michael Johnny, Chairman Egbema-Gbaramatu Communities Development Foundation, in his remarks, commend the effort of the parties that organised the agricultural programme.

He, however, solicited for scholarship for the people as part of the initiatives to widen their horizon.


MTN has paid N50bn – FG

Adebayo-Shittu (2)

Minister of Communications, Adebayo Shittu, Thursday confirmed that MTN has paid N50 billion out of the N780bn fine imposed by the Nigerian Communications Commission (NCC) for regulatory infractions.

MTN on Wednesday confirmed the payment, adding that it had also withdrawn the suit it brought against NCC.

The agency, however, responded that it was yet to receive the money.

But in a statement by Shittu’s Special Assistant on media, Victor Oluwadamilare, the minister said officials had communicated to him the receipt of N50bn payment by MTN.

“It has been confirmed that MTN Nigeria had indeed paid the said N50bn as a down payment of the N780bn fine, and had also withdrawn the court case against NCC.

“It made the payment pending further negotiation on the fine issue. We shall further inform Nigerians as the negotiation progresses,” the statement said.

MTN was fined N1.04 trillion last October by NCC for failure to disconnect 5.1 million improperly registered lines within the prescribed deadline.