Tiger Brands to sell stake in Chile-based company for R4.4bn
South African packaged goods company Tiger Brands has, through its wholly owned subsidiary Inversiones Tiger Brands South America, agreed to sell its 24.38% interest in Chile-based fast-moving consumer goods group Empresas Carozzi, to Carozzi, which owns the other 75.61% shareholding in Empresas Carozzi, for $240-million, or about R4.44-billion.
Empresas Carozzi operates within the grains, confectionary, sauces, dressings, baked goods, powdered beverages, ice cream and pet food categories and markets its products throughout Latin America.
The disposal forms part of Tiger Brands' ongoing portfolio optimisation strategy.
Tiger Brands points out that it initially invested in Empresas Carozzi to faciliate the expansion of its presence within Latin America. While the Chilean entity has performed well over the past 20 to 25 years, "delivering notable returns and dividends over this time", Tiger Brands' revised vision, as communicated in December 2024, is to grow as Southern Africa's leading consumer goods company – placing consumers at the centre of everything through our people and with the most accessible loved brands.
"As such, further expansion into the Latin American region is no longer a strategic priority for the company.
"In addition, Tiger Brands' portfolio optimisation strategy is underpinned by ensuring the company focuses on and deploys capital and resources in the areas within which the company has direct control. Accordingly, following an extensive strategic and financial review, the decision was made to dispose of Tiger Brands' interest in Empresas Carozzi," it says.
Tiger Brands will redeploy the proceeds from the transaction to strategic projects that are expected to deliver a competitive advantage and enhance the return on invested capital.
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