November 21, 2017

Dangote ‘fashi’ noodles business: sells plants to Indomie (Vanguard)

Dangote ‘fashi’ noodles business: sells plants to Indomie (Vanguard)
Dangote Noodles Limited, a unit of Nigerian company Dangote Flour Mills, has sold two production lines in Ikorodu and Calabar, to rival pasta maker De United Foods Industries, maker of Indomie Noodles.
De United said it has signed an agreement with Dangote Noodles to buy the plants. It would also buy stock worth 383.94 million naira. The deal comes after Dangote sold a small stake in its cement business to foreign investors in a one-off stock market deal valued at 27 billion naira.
Dangote Flour Mills, majority owned by Africa’s richest man Aliko Dangote, had said it wanted to quit the noodles business to focus on flour and pasta production, analysts say. Nigeria’s noodle market is fiercely competitive and De United with a market share of around 70 percent is seeking to consolidate the sector. Privately-held Dangote Industries Limited, with interests in agriculture, real estate and truck assembly, bought back the flour unit it had sold to South Africa’s Tiger Brand for $1 in 2015 after it posted losses.
Shares in Dangote Flour Mills have more than doubled so far this year after rising 276 percent last year. The stock price was down 3.17 percent on Tuesday at 9.20 naira. Dufil Prima Foods, the parent of De United Foods, is a privately held company set up over two decades ago, which has grown to become the largest pasta maker in West Africa.

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