Africa’s richest man, Aliko Dangote and three other directors resigned from the board of Dangote Flour Mills today as majority owner Tiger Brands cut funding support to its struggling Nigerian division.
South-Africa’s Tiger Brands said it was “currently exploring various alternatives with regard to its investment in Dangote Flour Mills, which also announced a change of name to Tiger Branded Consumer Goods Plc.
Tiger Brands has struggled to make a profit at Dangote Flour Mills (DFM) since paying nearly $200 million for a 65 percent stake in the firm three years ago as part of broader plan to expand elsewhere in Africa to offset slow growth at home.
Aliko Dangote holds 10 percent of the company’s equity in through Dangote Industries.Other directors that resigned from Dangote Flour are – Olakunle Alake, Asue Ighodalo and Arnold Ekpe.
Tiger Brands’ other businesses in Nigeria, Deli Foods and UAC Foods, will not be affected by the review. Tiger Brands competes with Nestle Nigeria in Africa’s biggest economy.