AVI has delivered solid earnings growth and maintained a strong balance sheet, the JSE-listed food company said on Monday.

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

The country’s second-largest food company, AVI, is not in talks with Tiger Brands, the largest food company in South Africa.

Tiger Brands may make an R8-billion cash-and-shares offer for AVI to create a South African food and consumer goods heavyweight.