South African consumer foods and healthcare products group Tiger Brands plans to sell an additional 10% to black economic-empowerment (BEE) investors after the completion of the unbundling of its healthcare products unit, it said on Tuesday.
“Post-unbundling, an additional broad-based equity deal of approximately 10% will be implemented,” Peter Matlare, Tiger Brands CEO, said at the presentation of the company’s interim results.
Tiger Brands plans to spin off its healthcare asset, Adcock Ingram, by the end of September this year.
The company did not provide any further details, except that the broad-based BEE deal would have an “element of vendor financing.”
The deal, if implemented, follows the R729-million empowerment deal unveiled in 2005 in which black staff bought 4% of the company. — I-Net Bridge