The Nation Newspaper

Tag: Dangote Flour

  • Olam okays N130 billion for Dangote Flour

    Olam International Ltd. has made a cash bid of N130 billion ($362 million) to buy Dangote Flour Mills Plc  as the Singapore-based agriculture trader looks to expand in West Africa as part of a rejig of its portfolio.

    Dangote Flour Mills is part of the business empire of Aliko Dangote, Africa’s richest man. The price was calculated on a debt-free basis, and will be adjusted to account for net borrowings, it said in a statement yesterday.

    The move sees Olam going back to its roots. The company was founded in Nigeria as an exporter of cashew nuts 30 years ago, and has since grown into a global behemoth with operations in more than 60 countries and a market value of $4.5 billion. The deal will enable it to build on a country workforce of almost 3,000, while tapping local demand for bakery, snacks and pasta products.

    “We are confident about the growth prospects in this country and this acquisition, doubling our installed capacity here, is evidence of our long-term commitment to the Nigerian economy,” K.C. Suresh, head of Olam’s grains and animal feed division, said in an emailed statement.

    The acquisition is also part of a strategic shift toward areas that offer the most demand, including flour milling in West Africa. Nuts, cotton and tropical spice.

     

  • Nigeria equity market rises by 0.14% in cautious trading

    The Nigerian Stock Exchange (NSE) market indices on Tuesday sustained growth, posting a marginal gain of 0.14 per cent in a cautious trading.

    Specifically, the All-Share Index rose by 43.72 points or 0.14 per cent to close at 32,173.66 against 32,129.94 achieved on Monday.

    Also, the market capitalisation which opened at N11.981 trillion increased by N17 billion to close at N11.998 trillion.

    Analysts at Cordros Capital said that investors should tread cautious due to sensitive political landscape.

    “Amidst the still sensitive political landscape, we still hold the view that the blend of compelling valuation story, together with positive macroeconomic picture, leaves scope for market recovery in the medium-to-long term.

    “However, we guide investors to tread a cautious trading path in the short term,” they said.

    A breakdown of the price movement table shows that NASCON recorded the highest price gain of 80k to lead the gainers’ table to close at N20 per share.

    Dangote Flour followed with a gain of 60k to close at N11, while Guaranty Trust Bank appreciated by 40k to close at N37.60 per share.

    Union Bank of Nigeria grew by 30k to close at N7, while Zenith Bank added 20k to close at N24.70 per share.

    Conversely, Dangote Cement topped the laggards’ table, shedding N1 to close at N196 per share.

    Read Also: NSE to launch new trading platform for mutual funds

    Redstar Express trailed with a loss of 50k to close at N5, while Caverton lost 15k to close at N2.30 per share.

    Custodian and Investment also declined by 15k to close at N5.90, while UACN went down by 15k to close at N8.10 per share.

    Also, the volume of shares traded improved by 75.45 per cent, while the value of shares transacted rose by 32.57 per cent.

    Consequently, investors bought and sold 400.87 million shares worth N3.46 billion traded in 3,885 deals.

    This was in contrast with a turnover of 228.48 million shares valued at N2.61 billion traded in 3,544 deals on Monday.

    Diamond Bank was the most active stock for the day, trading 119.79 million shares worth N299.33 million.

    FBN Holdings followed with an account of 44.39 million shares valued at N358.98 million, while United Bank for Africa sold 40.82 million shares worth N314.48 million.

    Guaranty Trust Bank traded 32.51 million shares valued at N1.22 billion, while Zenith Bank sold 24.40 million shares worth N604.99 million.

    NAN

  • Dangote Flour relaunches Semolina, Wheatmeal products

    Dangote Flour Mills  has relaunched two products, Dangote Semolina and whole wheatmeal. The unveiling of the two products took place in Kano and Ibadan.

    Speaking at the unveiling of both products, its Executive Director,  Halima Aliko Dangote said the new products come with ‘a taste to treasure’ as granules are better and fortified with micro granules for superior taste.

    She said the two products have been fortified with micronutrients such as Vitamin A, Vitamin B, Niacin, Zinc, Iron, Folic acid and many more, which makes it beneficial to nutritional health. Giving insight into the features of the new products, she said: “Our Dangote Wheatmeal contains 100 per cent wheat for 100 per cent nourishment which gives it the additional benefit of being rich in fibre for easy digestion.

    “Everything we do starts with an understanding of the consumers and their desires. Here, we engage regularly with the consumers, users and potential adopters of our brands to understand and appreciate their points of view on product needs and aspirations. This openness has helped in getting good and invaluable feedback on product performance and improvements.”

    Dangote Flour Mills is a subsidiary of Dangote Industries Limited. It recently invested in a dedicated semolina machine in its Apapa plant to produce 10 times the previous volumes.

    The products now have a longer shelf life and are available in a more complete range of pack sizes: 1kg, 5kg and 10kg. Dangote Semolina and Wheatmeal range come in very attractive new pack design.

    Dangote Flour Mills (DFM) is exploring new markets and embarking on aggressive expansion strategy by investing in additional production plants and mill to meet the growing needs of consumers. These expansions, according to the company, were in response to a growing national demand for flour and flour-based products and in addition to the company’s drive for increased market share. The miller in the last quarter launched a new product, All Purpose Flour, which is enriched with Vitamin A and made from high quality wheat sourced both locally and internationally.

     

     

  • Dangote Flour celebrates   World Puff Puff Day

    •Beats Guinness record frying 40 bags of flour

    Dangote Flour Mills, at the weekend, celebrated the maiden World Puff Puff Day. Over 50 confectioners were engaged to produce over 30,000 pieces of the local snack as part of activities marking the day.

    World Puff Puff Day, according to Dangote Flour Mills Group Managing Director, Thabo Mabe, is an initiative of the flour miller to celebrate three categories of people – confectioners, who fry the delicacy, consumers, who enjoy the snack and sellers, who make a living from it.

    He said the event was organised to celebrate Nigeria’s creativity in local delicacy as well as further create awareness for the company’s 1.5kg size launched in March.

    “The World Puff Puff Day is one of the most modern festivals. It is celebrated on October 27; this is the maiden edition. For us, we thought how do you bring flavour to the household and this is why we introduced the 1.5kg,” Mabe explained.

    He said it would make it easier for Nigerians to enjoy their puff puff, bread and other pastries at a go and make it healthy as well, rather than buying it from the market measured with plastic, which may not be hygienic.

    “But now the small 1.5kg is handy, it can be put in the cabinet and consumers can create flavour of their choice,” Mabe added.

    The event, which also had in attendance President, Dangote Group, Aliko Dangote, saw the company breaking the Guinness Book record of 200kg, which equals four bags of flour recorded to have been fried at a location.

     

     

     

  • Dangote Flour changes to Tiger Branded Consumer Goods

    Dangote Flour changes to Tiger Branded Consumer Goods

    The Company Secretary/Legal Adviser of Dangote Flour Plc, Aisha Ladi Isa has notified the Nigerian Stock Exchange (NSE), of the company’s change of name to Tiger Branded Consumer Goods Plc.

    The new name is to better reflect the new ownership of the company as the change in the substantial ownership and shareholding of the company has been approved by the shareholders.

    In a letter dated September 2, she said the change of name was in line with the special resolution passed at its annual general meeting (AGM) of July. She therefore requested the Exchange to effect the name change as well as use the new symbol of Tiger Branded Consumer Goods. The new name has been approved by the Corporate Affairs Commission (CAC), she added.

    Tiger Brands acquired a 63.35 per cent shareholding interest in Dangote Flour Mills in Nigeria in 2012 for approximately R1.5billion.

     

  • Dangote Flour loses N4.7b in 3 months

    Dangote Flour loses N4.7b in 3 months

    Dangote Flour Mills (DFM) Plc lost about N4.7 billion in the first quarter, an early indication of the worsening performance of the flour-milling company.

    Interim report and accounts of DFM for the three-month period ended March 31, this year showed declines in sales and profitability. Turnover dropped to N18.58 billion in first quarter 2014 as against N19.13 billion recorded in the comparable period of 2013. Loss before tax stood at N4.74 billion in 2014 compared with N3.29 billion in 2013 while loss after tax more than doubled from N1.84 billion in 2013 to N4.14 billion in the year.

    Tiger Brands Limited, South Africa’s largest food company, has said it would write off about half of its investment in Dangote Flour Mills Plc, less than two years after buying a majority stake in the Nigeria-based producer.

    Tiger, which makes Jungle Oats and All Gold tomato sauce, will impair Dangote Flour’s value by 849 million rand, about $82 million, because of “underperformance” and “excess milling capacity that continues to increase in the Nigerian flour market,” the Johannesburg-based company said.

    The company bought a 63.5 per cent stake Dangote Flour Mills from Dangote Industries Limited in September 2012 for about $190 million, its third purchase in Nigeria. Tiger targeted acquisitions in Africa’s largest economy as it saw limited opportunities in its home market.

    The food producer sees earnings per share for the six months ended March 31 falling as much as 55 percent from a year earlier because of the write-off, it said in a statement. Excluding the impairment, profit from continuing operations will improve 6 percent to 10 percent, Tiger said.

    Tiger Brand recently indicated that its first-half profit declined by 52 per cent after it wrote down its investment in Nigeria’s Dangote Flour Mills Pl.

    Earnings dropped to 631.9 million rand ($60 million) in the six months to March 31, from 1.29 billion rand a year earlier, the Johannesburg-based company said in a statement. Tiger said May 15 it will impair Dangote Flour by 849 million rand, half its investment, due to underperformance.

    “Given the current underperformance of DFM and the excess milling capacity that continues to increase in the Nigerian flour market, it was considered appropriate to carry out a review of the carrying value of the company’s investment in DFM,” Tiger said in the statement.

    Tiger has said it would seek to boost profit from the division by expanding into “value-added” products that use flour, it said. The company will pay a half-year dividend of 3.29 rand a share, an increase of 6 percent from the same period a year earlier.

  • ‘Tiger Brand’s N3.16b takeover will reduce Dangote Flour’s liquidity’

    ‘Tiger Brand’s N3.16b takeover will reduce Dangote Flour’s liquidity’

    The ongoing bid by Tiger Brands Limited to take over additional 6.65 per cent additional equity stake from minority shareholders of Dangote Flour Mills (DFM) Plc could lead to reduction in the liquidity of the flour-milling company on the stock market.

    Tiger Brands Limited, a leading South African fast-moving consumer goods company, which had bought majority equity stake in DFM, is seeking to take-over up to 332.5 million ordinary shares of 50 kobo each at a price of N9.50 per share from minority shareholders of DFM in a deal valued at N3.16 billion.

    The takeover transaction will add 6.65 per cent equity stake to the majority equity stake of Tiger Brands, raising the majority controlling equity stake of the South African firm to 70 per cent. DFM currently has 5.0 billion ordinary shares of 50 kobo each outstanding share capital.

    Dangote Group’s Dangote Industries Limited (DIL) had 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 takeover document obtained by The Nation indicated that the directors of the company were aware that the takeover could have adverse impact on the liquidity and pricing of DFM at the stock market.

    A disclosure statement signed on behalf of Tiger Brands Limited by Peter Matlare, who presides as chief executive officer at DFM, indicated that the “implementation of the offer will presumably result in a reduction of the free float of DFM” and “it is to be expected that dealings in ordinary shares of DFM following implementation of the offer will be lower”, which will lead to reduction in liquidity.

    According to the document, it is possible that purchase and sell orders relating to DFM’s ordinary shares cannot be executed at all or not in due time.

    “In addition, the possible reduction in liquidity of the ordinary shares could lead to significant price fluctuations of DFM ordinary shares that are available for trading in the future,” the document stated.

    Meanwhile, the board of DFM stated that it was not recommending the takeover to minority shareholders, advising the shareholders to seek independent investment opinions.

    According to the board, the takeover bid was only in pursuance of section 131 of the Investments and Securities Act (ISA) 2007 and Rules 445 to 448 of the Securities and Exchange Commission (SEC)’s rules. The rules mandate Tiger Brands to make takeover bid to minority shareholders of DFM on the same terms and conditions agreed with DIL in order to provide a fair and orderly exit to minority shareholders who may wish to divest along with DIL.

    Tiger Brands indicated it will not take more than 6.65 per cent equity stake to ensure DFM continues to meet the minimum free float of 20 per cent on the Nigerian Stock Exchange (NSE). If the takeover scales through, Tiger Brands will hold 70 per cent equity stake, which in addition to DIL’s 10 per cent equity stake, leaves just 20 per cent equity stake in the hands of minority shareholders.

    Under the DIL-Tiger Brands deal, Alhaji Aliko Dangote, President of the Group, retained his chairmanship of the board of the flour mills. The executed Share Sales Purchase Agreement (SSPA), which articulated the terms under which the Sale was consummated with Tiger Brands, provided that DIL will retain a strategic interest of 10 per cent of the total issued ordinary share capital of DFM for a minimum period of five years after implementation of the transaction during which the Group will have the right to appoint two directors to the board of DFM, with Alhaji Aliko Dangote continuing as chairman of the company.

    Under the extant rule, a 70 per cent controlling equity stake would enable Tiger Brands to pursue strategic changes with little supports from minority shareholders. Extant Nigerian laws require 75 per cent shareholdings to approve such major changes.