Tiger Brands Consumer Goods Plc will now be known as Dangote Flour Mills Plc following the approval of Shareholders at the Annual General Meeting (AGM) of the company held on Thursday, 7 April 2016.
Africa’s Richest Man, Aliko Dangote bought back his stakes in Tiger Brands in December 2015 after three years of consecutive losses forced Tiger Brands which had bought Dangote Mills to sell its holdings.
Tiger Brands is South Africa’s biggest consumer foods maker and bought 65.1% of Dangote Flour Mills from Aliko Dangote in 2012 for $200 million. However, Tiger Brands could not turn any profit from DFM operations after taking over the management of the company running into losses, which eventually forced it to decide to sell its stakes.
Aliko Dangote bought back the 65.1% stake for a nominal value of $1 after agreeing to pump in N9.2 billion to revive the company. Aliko Dangote is said to have agreed to buy back the company in order to save over 3000 Nigerian jobs that were stake if the company closed down.
DFM share price closed at N2.30 on 18 April 2016. The stock is up 103.5% since the beginning of the year, making it the best performing stock year to date.