542
542 points
Loading...

Dangote Noodles Limited, a unit of Nigerian company Dangote Flour Mills, has sold two production lines in Ikorodu and Calabar, to rival pasta maker De-United Foods Industries, maker of Indomie Noodles.

The transaction is valued at 3.75 billion Naira ($12.26 million).

De United said it has signed an agreement with Dangote Noodles to buy the plants. It would also buy stock worth 383.94 million naira.

Loading...

The deal comes after Dangote sold a small stake in its cement business to foreign investors in a one-off stock market deal valued at 27 billion Naira.

school children savouring noodles

Dangote Flour Mills, majorly owned by Africa’s richest man Aliko Dangote, had said it wanted to quit the noodles business to focus on flour and pasta production, analysts say.

Nigeria’s noodle market is fiercely competitive and De United with a market share of around 70 percent is seeking to consolidate the sector.

Loading...

Privately-held Dangote Industries Limited, with interests in agriculture, real estate and truck assembly, bought back the flour unit it had sold to South Africa’s Tiger Brand for $1 in 2015 after it posted losses.

Shares in Dangote Flour Mills have more than doubled so far this year after rising 276 percent last year. The stock price was down 3.17 percent on Tuesday at 9.20 Naira.

Dufil Prima Foods, the parent of De United Foods, is a privately held company set up over two decades ago, which has grown to become the largest pasta maker in West Africa.

Loading...

De United said the transaction had been approved by both companies and the regulators.

A banking source close to the deal said that De United would continue to produce noodles under the Dangote brand for two years after the acquisition.

In July Dufil Prima Foods said it would raise 40 billion Naira in the local debt market to broaden its funding base.

Loading...
LATEST NEWS & JOBS SUBSCRIPTION

Be 1st to know! Join over 8000+ others receiving our latest news, job vacancies, and other cool stuff direct to their inbox.

Thank you for subscribing.

Something went wrong.

Powered by Best Social Sharing Plugin for WordPress Easy Social Shre Buttons


Like it? Share with your friends!

542
542 points

What's Your Reaction?

Lol Lol
0
Lol
Love Love
0
Love
angry angry
0
angry
Like Like
0
Like
Dislike Dislike
0
Dislike
omg omg
0
omg
Admin

0 Comments

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Please Share

Spread the word. Let your friends know!
Later
This window will automatically close in 14 seconds
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format
LATEST NEWS & JOBS SUBSCRIPTION

Be 1st to know! Join over 8000+ others receiving our latest news, job vacancies, and other cool stuff direct to their inbox.

Thank you for subscribing.

Something went wrong.

Powered by Best Social Sharing Plugin for WordPress Easy Social Share Buttons
LATEST NEWS & JOBS SUBSCRIPTION

Be 1st to know! Join over 8000+ others receiving our latest news, job vacancies, and other cool stuff direct to their inbox.

Thank you for subscribing.

Something went wrong.

Powered by Best Social Sharing Plugin for WordPress Easy Social Share Buttons