Dangote Sells Off Noodle Plants To Competitor For N3.75bn
It seems Africa's richest man Aliko Dangote wants to focus on pasta and flour.
The business mogul has sold off his noodles plants worth N3.75 billion to rival pasta maker, De United Foods Industries.
De United said it had signed an agreement with Dangote Noodles to buy plants at its Ikorodu and Calabar factories. It will also buy stock worth N383.94m.
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 N27bn.
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 in 2015 after it posted losses.
Shares in Dangote Flour Mills have more than doubled this year after rising by 276 per cent last year. The stock price was down by 3.17 per cent on Tuesday at N9.20 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.
De United said the transaction had been approved by both companies and the regulators.
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