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How Dangote exit from Dangote Flour board

From Kayode Ogunwale, Lagos

No doubt Tiger Brands Limited, a leading South African fast moving consumer goods company become majority shareholder of Dangote Flour Plc after acquired 70 per cent of the flour company’s in September 2012.

Despite acquisition of major stake by Tiger Brands the name and Dangote Flour still remain and Alhaji Aliko Dangote was the Chairman of the company’s until Monday, September 16, 2015.

In September 2012 Tiger Brands Limited, seeks to increase its stake in Dangote Flour Mills to 70 per cent. Tiger Brands currently holds 63.35 per cent, following Dangote Industries Limited divestment of 3.67 billion ordinary shares to the South African firm last year for $181.9 million.

However, a regulatory filing at the Nigerian Stock Exchange (NSE) in 2012 by Tiger Brands indicated that the company wants to buy additional 332.5 million ordinary shares of 50 kobo each at a N9.50 per share from minority shareholders of Dangote Flour Mills.

Additional 332.5 million shares would bring the total holdings of Tiger Brands to 3.5 billion shares, which 70 per cent of the 5.0 billion paid up shares of Dangote Flour Mills.

At the conclusion of the proposed transaction, Dangote Industrial Limited retained its 10 per cent, Tiger Brands 70 per cent, while other investors have 20 per cent.

Dangote Group had explained that the decision to divest was in furtherance of Dangote Industrial Limited’s optimisation and diversification objective and relates specifically to its going forward strategies for Dangote Flour Mills.

Dangote Flour Mills Plc has 5 billion share outstanding while its share price was N2.41 kobo per share as at Monday this week, bringing the market capitalization of the company’s to N12.050 billion.

Just on Monday, Tiger Branded Consumer Goods Plc filed interim announcement to the Nigerian Stock Exchange advised shareholders that Tiger Brands Limited has informed the board of directors of Tiger Branded Consumer Goods Plc that Tiger Brands Limited a decision not to provide any further financial support with respect to its investment in Tiger Branded Consumer Goods Plc and also informed the board of Tiger Branded Consumer Goods Plc that it is currently exploring various alternatives with regard to its investment in Tiger Branded Consumer Goods Plc.

This decision according to a source triggered resignation of Alhaji Aliko Dangote, Mr. Olakunle Alake, Mr. Asue Ighodalo and Mr. Arnold Ekpe from their appointments as directors of Tiger Branded Consumer Goods Plc.

Commenting on the resignation of some board members, a shareholder leader, Boniface Okezie said there won’t be any negative implication if the owner of the company’s knows what they are doing.

According to him, Aliko Dangote has reduced his stake to 10 per cent and there is no need to be on the company’s board again.

“What Tiger Brands needs is to build strong brand that can compete with Flour Mills of Nigeria, the leader in the industry.”

In his own, another shareholder leader, Mikail Shehu Malami said the resignation is long overdue as Dangote is no longer majority stakeholder.

He believed that the flour mill company’s deserve to be a market leader in flour milling due to Dangote pedigree but far behind Flour Mills of Nigeria.

He said Dangote resignation from the board is a challenge for the new owner to prove to Nigerians that they have what it takes to drive the company’s.

Grid down by 480mw over Okpai tower vandalism

By Simon Echewofun Sunday

The Transmission Company of Nigeria (TCN) has said its Tower No. 62, along the Okpai-Onitsha 330kV double circuit transmission line in Delta State was vandalized last Tuesday.

The line evacuates power from the 480megawatts (mw) Okpai Power Station in the State was hacked down at Asaba Uchi, Ndokwa East Local Government resulting in the loss of the 480mw from the national grid, TCN said.

With the shutdown of Okpai plant, peak power generation reported by the Presidential Taskforce on Power was at 4,330mw last Sunday. Daily average generation was at 4,147mw per hour of which 4,071mw per hour was averagely sent out for delivery.

A statement from its management yesterday said the incidence which took place about 4:51am on November 10, 2015 caused a power trip off along the line with the fault traced to the vandalized tower that had its two legs cut off, causing it to hang.

It said engineering crew at now at the swampy Asaba forest to anchor the transmission tower temporarily, to avoid total collapse and partially transmit power from the power plant.

Kano Disco procures 100,000 smart meters

By Simon Echewofun Sunday

The Kano Electricity Distribution Company (KEDCO) yesterday said it has procured 100,000 smart meters for distribution across Kano, Katsina and Jigawa states to stem the tide of estimated billing system.

A statement issued by its spokesman, Mohammed Kandi said the effort was part of the firm’s plans to roll out at least 500,000 meters to its customers within five years.

It said: “KEDCO has begun the execution of its five years investment plans which include stepping up its investment needs in line with the directives of the Nigerian Electricity Regulatory Commission (NERC) that Distribution Companies should provide meters for all their customers.”

The Disco however appealed for patience from its customers as it is determined to cater to the electricity need of the people, the statement noted.