TIGER Brands is selling its 51% stake of its Ethiopian business to its joint-venture partner for an undisclosed amount, the fast-moving consumer goods group said on Thursday.
Tiger Brands said joint-venture partner EAG had made an offer to buy the stake of East Africa Tiger Brands Industries (EATBI) "at a price that was considered fair and reasonable".
"Ethiopia remains a market of significant potential and options will be explored to maximise opportunities in relevant product categories," Tiger Brands said in the statement.
In its interim results released in May, Tiger Brands combined Kenyan-based Haco and EATBI into its East Africa segment. Their combined turnover was R514.1m and profit R35.7m for the six months to end-March.
"Both of the East African businesses, Kenyan-based Haco and Ethiopian-based EATBI, reported strong volume growth during the period. Following last year’s losses, Haco achieved a profit turnaround while EATBI improved its operating performance in a difficult macro-economic environment," Tiger Brands said in its interim results statement.
The sale of its Ethiopian subsidiary follows the sale of its Nigerian business, Tiger Branded Consumer Goods, in February to Dangote Industries for about R700m.
Tiger Brands remains in Nigeria via Deli Foods, which it said in its interim results "continues to face a tough economic environment, with the constraints on disposable incomes limiting the ability to recover the significant increase in raw material costs due to the devaluation of the naira."
