| Fri 22 May 2009, 14:00 | | TBS - Tiger Brands Limited - Sale of NestlE South Africa Mayonnaise Business |
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TBS
TIIH
TBS - Tiger Brands Limited - Sale of NestlE South Africa Mayonnaise Business
TIGER BRANDS LIMITED
"Tiger Brands"
(Incorporated in the Republic of South Africa)
(Registration number 1944/017881/06)
Share code: TBS
ISIN: ZAE000071080
The following is a joint announcement for information purposed released by Tiger
Brands Limited and NestlE (South Africa) (Proprietary) Limited
"SALE OF NESTLE SOUTH AFRICA MAYONNAISE BUSINESS
NestlE, the world`s leading Nutrition, Health and Wellness company, has
concluded the sale of its South African Crosse & Blackwell mayonnaise business
to Tiger Brands Limited.
The sale agreement signed on 22 May 2009 will transfer ownership and management
of NestlE`s Crosse & Blackwell mayonnaise production plant in Bellville, Cape
Town, to Tiger Brands Limited. The transaction is subject to regulatory
approvals.
The sale is the result of a closed bidding process and follows several months of
discussion with a range of potential partners - including a number of black-
owned business consortiums, which expressed an interest in entering the food
manufacturing business.
After several rounds of discussion and a due diligence process with a short-list
of four potential bidders, Tiger Brands was found to be the most suitable
consortium in meeting three key NestlE requirements:
- Ensuring the continued survival and growth of the Crosse & Blackwell
mayonnaise brand;
- Ensuring a secure future for the approximately 100 employees currently
employed at the plant; and
- Ensuring a favourable return for NestlE shareholders.
"The sale of an asset of this nature is not a decision that is taken lightly. In
line with our business objective of focussing on value added Nutrition, Health
and Wellness products, we regularly review the composition of our portfolio, in
particular, products and/or categories that are not in line with our long term
strategic direction. The sale of our mayonnaise business accords with this
approach." said NestlE South Africa Chairman and Managing Director Yves
Manghardt.
Tiger Brands CEO, Peter Matlare said that, being such an extremely well-
established brand in South African homes, Crosse & Blackwell mayonnaise would be
a welcome addition to the Tiger Brands stable.
Peter Matlare said the acquisition of the Crosse & Blackwell business was
entirely consistent with the expressed strategy of Tiger Brands in seeking
appropriate local acquisition opportunities that involve leading brands. Tiger
Brands will continue to evaluate local and other African opportunities."
Bryanston
Date: 22 May 2009
Sponsor
JP Morgan Equities Limited
Date: 22/05/2009 14:00:02 Produced by the JSE SENS Department.
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