Tiger Brands: acquires majority stake in Dangote Flour Mills

Johannesburg / ZA. (tbl) Shareholders are advised that Tiger Brands Limited and Dangote Flour Mills PLC (DFM) have reached an in principle agreement regarding the terms of a potential transaction that would, if implemented, result in Tiger Brands acquiring 63,35 percent of the total ordinary issued share capital of DFM from Dangote Group (the Potential Transaction). Tiger Brands Limited is South Africa´s largest food and branded consumer-goods company. DFM is a public company headquartered in Lagos (NG), market leader in the Nigerian flour and pasta markets and listed on the Nigerian Stock Exchange.

The proposed terms of the Potential Transaction are encapsulated in a share sale and purchase agreement (SSPA). Before the Parties are able to sign the SSPA, the Potential Transaction and its terms have to be considered and approved by the SEC, in accordance with the regulatory requirements in Nigeria. Shareholders are hereby advised that the Parties have submitted the Potential Transaction and its terms to the SEC for approval.

Should the SEC approve the Proposed Transaction and its terms, the Parties intend to sign the SSPA. Upon signature by the parties of the SSPA, Tiger Brands will release a full announcement regarding the terms of the Potential Transaction. Implementation of the Potential Transaction will be subject to the fulfilment of certain conditions precedent, including approval of the Exchange Control Division of the South African Reserve Bank.