Business

Indomie Buys Dangote Plants In Ikorodu, Calabar

Indomie Buys Dangote Plants In Ikorodu, Calabar

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.

Image result for Indomie buys Dangote plants in Ikorodu, Calabar

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.

Dangote Flour Mills, majority 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.

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.

READ ALSO: Kylie Jenner Quietly Threw a Baby Shower One Day After Sister Kim Kardashian

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.

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.

 

 

 

 

 

 

 

 

Click Here to download our mobile APP on your android phone

About the author

Jocuws

Jocuws

jocuws is a blog platform of up-to-date news of happenings around us and in the world at large

Comment Here

Comment

JUMIA

PAYPORTE

KONGA

Error: Access Token is not valid or has expired. Feed will not update.
This error message is only visible to WordPress admins

There's an issue with the Instagram Access Token that you are using. Please obtain a new Access Token on the plugin's Settings page.
If you continue to have an issue with your Access Token then please see this FAQ for more information.

Follow Us on Instagram

AIR RESCUE GUARD

  • Plans starting at $75

TRAVELSTART

Follow me on Twitter

We use cookies. By browsing our site you agree to our use of cookies. Read moreAccept