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Tiger Brands Limited - Chairman`s Update and Results of AGM
Share Code: TBS
ISIN Code: ZAE000023560
("Tiger Brands", or "the company")
CHAIRMAN`S UPDATE AND RESULTS OF AGM
24 February 2003
Tiger Brands today announced that an agreement has been
concluded to acquire the 50% interest in Enterprise Foods
(Pty) Limited held by Foodcorp (Pty) Limited.
The acquisition, which is subject to the approval of the
Competition Tribunal, would result in Enterprise Foods (Pty)
Limited becoming a wholly owned subsidiary of Tiger Brands.
This announcement was made by Robbie Williams, Chairman of
Tiger Brands, at the annual general meeting of shareholders
held today. Robbie Williams said that this acquisition is in
keeping with Tiger`s strategic focus on branded consumer
products and gives further impetus to Tiger`s position in the
branded protein market. Enterprise Foods manufactures and
markets processed and canned meat products and has brands such
as Enterprise, Renown, Like-it-Lean, Bokkie, Miliekip and Top
One. The company has an annual turnover in excess of R800
million.
This acquisition will not have a material effect on the
headline earnings or net asset value per share of Tiger Brands
for the current year.
Williams said that the Robertsons Homecare business, which was
acquired with effect from 1 December, was being successfully
integrated into the Company`s operations. The business owns
the Doom, Fastkill, Rattex, Peaceful Sleep, ICU and Airoma
brands. The annual turnover is approximately R250 million.
In January 2003 the Competition Commission approved the
acquisition of the Citro Soda business from Abbott
Laboratories and the conclusion of an evergreen license
arrangement in respect of the Vidaylin range of children`s
vitamins and the Ferograd and Ferofolic ranges for the
treatment of iron deficiency. The estimated annual turnover
of these brands, in total, amounts to R40 million.
Williams said that these acquisitions provide the ability for
Tiger Brands to enter into new markets and will facilitate the
focus on growth in Africa.
Turning to the current performance of the business, Robbie
Williams said that it had been anticipated at the time the
annual report was released in December 2002 that the
strengthening of the rand was likely to adversely affect
results through its impact on the rand conversion of the
earnings of Tiger`s foreign associates - ConAgra Malt and
Carozzi - and also the impact on export realisations.
Williams said that the current strength of the rand was having
a negative impact.
A further factor that has affected the current period`s
trading results is the sharp fall in the maize price which has
resulted in falling market prices for maize products.
Operating margins are currently severely affected by the
utilisation of higher priced maize stocks carried over from
2002.
Other areas of the business are performing well, although the
Pharmaceutical division is experiencing some margin decline
due to the impact of lower priced generic equivalents on its
branded prescription business.
AGM results
Ordinary resolution no. 7 pertaining to an amendment to the
Company`s share option scheme was withdrawn and not put to the
vote. As Mr I B Skosana resigned from the board in early
February, the resolution relating to his re-election was also
not put to the vote. The resolution which sought the approval
of shareholders for a general authority for issuing shares for
cash did not achieve the 75% approval of those present or
represented by proxy as required by the JSE Securities
Exchange. Shareholders approved all other resolutions
proposed at the AGM with the requisite majority, including the
special resolution authorising directors to buy back shares on
the open market.
ENDS
Date: 24/02/2003 11:06:06 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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