/ 18 November 2008

AVI shareholder agrees to back Tiger bid

Coronation Fund Managers, a major shareholder in AVI, has agreed to back any takeover bid for the consumer goods firm by Tiger Brands, it said on Tuesday.

Coronation holds 25% in AVI for clients, boosting chances the possible bid may go ahead even though AVI’s board rebuffed it. Tiger has already acquired 4,6% of AVI on the market.

A Coronation spokesperson said the fund manager had signed an irrevocable agreement with Tiger.

”The irrevocable agreement implies that we have supported the offer,” she said, confirming an earlier newspaper report. She said the terms of the agreement meant she could not comment further.

Tiger Brands said on Monday it was considering offering R8-billion in cash and shares for AVI to create a South African heavyweight consumer goods company better able to expand in Africa. AVI rebuffed the approach, saying it did not make commercial sense. — Reuters