Why Aliko Dangote Resigned from Board of Dangote Flour Mills
As you read this, Africa’s richest man and Chairman, Dangote Group, Aliko Dangote has resigned from the board of Tiger Branded Consumer Goods Plc, formerly known as Dangote Flour Mills.
#OSG gathered that Dangote resigned alongside three other directors – Olakunle Alake, Asue Ighodalo and Arnold Ekpe, a former group managing director of Ecobank Transnational Incorporated.
Their resignation, announced late on Monday, followed the decision of the majority share owner, South African Tiger Brands, to reduce its financial support to the Nigerian subsidiary.
In a notice to the Nigerian division, and received also by the Nigerian Stock Exchange, the South African fast consumer goods company said, “Tiger Brands has decided not to provide further financial support with respect to its investment in Tiger Branded Consumer Goods Plc of Nigeria,” it said.
Sources close to the South African company said Tiger Brands decision followed their inability to make money from Dangote Flour Mills after committing about 200 million dollars or 65 per cent equity in the Nigerian flour mill in 2013.
Aliko Dangote holds 10 percent of the company’s equity through Dangote Industries.