Shell Energy Entrepreneurs banner Yudala banner
Tiger Brands eyes Africa expansion

By Nick Hedley on 28/11/2017

Share on facebook Yahoo mail icon Gmail icon

Views: 227

•Tiger Brands CEO Lawrence MacDougall
•Tiger Brands CEO Lawrence MacDougall

 Tiger Brands was looking for acquisitions outside SA and would place more emphasis on due diligence than in the past, management said on Monday.

CEO Lawrence MacDougall said the consumer goods group had a “clearer” acquisition strategy that focused on core product categories. Tiger had also “upweighted” due diligence considerations and would closely assess all aspects of target firms, including routes to market.

In 2012, former CEO Peter Matlare led the acquisition of a 65.7% stake in Nigeria’s Dangote Industries for R1.6bn, though successive losses prompted Tiger to sell the business back to tycoon Aliko Dangote for $1 in late 2015.

Tiger’s chief financial officer, Noel Doyle, said the group was pursuing bolt-on deals – “which we’ve generally executed quite well” – and larger opportunities at the right price.

“It’s just so tough to find value – seller expectations are still very high,” Doyle said. Tiger’s strong balance sheet meant it had “significant capacity” for takeovers, he said. It could “comfortably” take on another R7.5bn to R8bn of debt.

“We’re starting to build a pipeline and we might have something to talk about at the half-year mark next year, but there’s no imminent transaction,” he said.

Tiger saw East Africa as an attractive market, Doyle said. It said it was selling its stationery and laundry-detergent operations in the region as they were noncore.

The group also planned to manufacture some of its South African “power brands” in other African states, partly in response to trade tariffs and a lack of foreign exchange liquidity in certain markets.

Doyle said that while Tiger was still deciding which brands to manufacture abroad, it wanted to build its presence in East Africa and Nigeria.

“Notwithstanding the political challenges in the short term (in East Africa), we still see that as an attractive region … for baby, homecare, some of our personal care brands, and potentially some of our breakfast brands.”

Investec analyst Anthony Geard said, “I’m sure there is scope to do more with South African brand icons in the rest of Africa, but caution seems to be the watchword for now and I can’t disagree with that.”

He did not expect “much anxiety about Tiger’s acquisition strategy – I think the company has learnt from its mistakes and is terrified of repeating them,” Geard said.

“Plus, the company now seems to be in good hands: new CEO MacDougall comes across very well and has been very clear that any acquisition will be executed within strict parameters,” he said.

Michael Treherne, portfolio manager at Vestact, said while expanding into the rest of Africa was a good long-term strategy, “I would, however, like to see them move slowly” and do smaller deals. (BDZA)

Source News Express

Posted 28/11/2017 12:58:25 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

 

You may also like...
GUN DUEL between OBASANJO and JONATHAN? •The landmines...

Businessman docked for posing as Customs officer

Militancy: Ijaw leaders in crucial meeting

Dangote, Africa’s highest gainer •Net worth surges $9.2b...

HURIWA to Buhari: Stay back home and tackle...

Nigerian Professor heads UN scientific panel

Oyo, the politics of inanities and the Ladoja...

Jaiz gets licence to operate as a national...

Lagos provides shelter for teenagers rescued by Task...

WHO declares global emergency over Zika-linked condition

More Niger Delta militants ready to surrender weapons...

NIMASA gives insight into ship collision, rescue operation...

 

Latest News Gas explosion kills Rotary Club President Manufacturers seek patent for generator that does not use fuel or gas UN Security Council may over-rule US on Jerusalem SERAP queries Buhari over $1bn Boko Haram fund Taraba Governor raises alarm over plan to attack state The highest bidder won 2017 Anambra governorship election — South East CLO •Says democracy in danger Tinubu declares opposition dead in Oyo State PDP, APGA bicker over court verdict on Anambra Central Senate seat ‘Love Jihad’: Outrage as Indian court issues tough guidelines on religious conversions, inter-faith marriages Prof. Akin Oyebode’s ‘Exogural’ at 70, By Tony Iyare Buhari at 75: Why God kept him alive, By Femi Adesina ECOWAS Heads of State meet in Abuja

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (301,951 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (286,739 views) Shameless Genevieve Nnaji exposes breasts in public (231,465 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (194,012 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (183,783 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (170,959 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (147,685 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (132,818 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (131,047 views) Lagos plane crash: Journalist releases victims’ names (119,490 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (115,866 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (112,684 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (33) Business (2,825) Business Verdict (30) Columnists (779) Complaints & Requests (94) Enterprise & Opportunities (195) Entertainment (421) Features (528) Global Business Monitor (198) International (1,694) Interviews (138) Live Commentary (28) Love Matters (93) News (31,088) Opinion (845) Pidgin (9) Politics (4,227) Religion (654) Sports (1,382) Stock Watch (25) AMA & Al Jazeera Global Update

 

CBN Banner advert

CBN Words on marble

 

 

MOBO Awards

 

APO Group Partner

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!