DIL was approached by Tiger Brands to acquire its 65.7 per
cent shares of TBCG Limited. While some stakeholders have questioned the
rationale behind the investment decision by DIL, sources close to the Dangote
Group said the company had to consider the repurchase of TBCG so as to keep the
company as a going concern, which preserves value for the minority retail
shareholders. The move also secured direct employment for over 3,000 employees.
“Going by every indication, the future of the company was
very doubtful and that was risky for the employees which are over 3,000
Nigerians apart from others who benefit from the company’s services through
other ancillary services. The return of DIL is therefore a big relief and good
decision to save the jobs of the staff of TBCG,” a market operator said.
According to the repurchase agreement, subject to regulatory
approvals, DIL will provide TBCG with an immediate cash injection of N10
billion. In return, Tiger Brands will divest its 65.7 per cent shareholding in
TBCG to DIL for a nominal consideration and write off its shareholder loans to
TBCG.
In addition, Tiger Brands will assume and settle outstanding
debt guaranteed on behalf of TBCG.
Already, the former directors of TBCG, Alake, Ekpe and
Ighodalo have agreed to re-join the board of TBCG and have consequently been
reappointed with effect from 10th December 2015.
The companies have explained that the transaction will
ensure that TBCG is maintained as a viable going concern, able to retain its
employees and meet its obligations to its stakeholders.
“The Transaction envisages that sufficient capital will be
injected into TBCG in order to stabilize the business and place it on a
sustainable path aimed at creating value for its stakeholders,” they said.
Credit: vanguardngr.com
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