Africa’s richest man, Aliko Dangote, has announced his resignation from Dangote Flour Mills after Tiger Brand of South Africa withdrew funding.
It’s not only Dangote that resigned, others like Olakunle Alake, Asue Ighodalo and Arnold Ekpe do same after the South Africa company consumer goods maker made the announcement.
Tiger Brands decided to withhold its funding to Nigerian division following major economic reviews it underwent. The mother company has not been making profit from Dangote Flour Mills (DFM) since paying $200 million for the 65 percent stake in the firm back in 2012, Reuters says.The statement in parts reads:
“Tiger Brands has decided not to provide further financial support with respect to its investment in Tiger Branded Consumer Goods Plc of Nigeria”.
Though DFM is named after Dangote, his group’s equity stake in the firm is only 10 percent. Anthony Geard, an industry analyst with Investec Securities, said “without Tiger Brands injecting money, it is the end of the line for DFM”.