(Ecofin Agency) - South African Tiger Brand reached an agreement with Dangote group concerning cession of Tiger Branded Consumer Goods (TBCG), former Dangote Flour Mills. Truly, the company announced it was selling 65.7% stake in TBCG to Dangote Industries for one dollar.

Under this agreement, Dangote is to inject R700 million whilst Tiger Brands will settle debt of R400 million. With this deal, the South African firm will close one of the saddest chapters of its African expansion.

In 2012, attracted by Nigerian markets, the company bought 65% stake of Dangote Flour Mills for R1.6 billion. However, since then, it was unable to profit from its investment and even had to on two occasions cancel its value. Finally, the group recently threw in the towel announcing it was cutting its funding in the Nigerian subsidiary.

Aaron Akinocho