Alhaji Aliko Dangote’s Dangote Industries Limited (DIL) may soon launch a mandatory takeover bid for minority shares in Tiger Branded Consumer Goods Company (TBCG) Plc.
DIL last week concluded the acquisition of the majority equity stake in TBCG, formerly known as Dangote Flour Mills. DIL acquired 65.6 per cent majority equity stake in the former Dangote Flour Mills Plc, now rebranded TBCG 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 last Monday at the NSE. The cross deal was struck through the negotiated cross deal window of the NSE at N1.24 per share. TBCG’s issued share capital currently stands at 5.0 billion shares, indicating that the transferred 3.28 billion shares represents 65.6 per cent of the current issued share capital.
The latest acquisition increased DIL’s shareholding in DIL to more than 75 per cent. With this, DIL might be required to make a mandatory take-over bid to the remaining shareholders of TBCG in line with section 131 of the Investment and Securities Act (ISA) and Rule 445 of SEC’s Rules and Regulations.
In the same circumstance, FBN Assurance, which had acquired 71.2 per cent equity stake in Oasis Insurance, had made a mandatory takeover bid for shares held by minority shareholders.
