Centum Investments single largest shareholder with a 30% stake, Christopher Kirubi has bought back the 51 per cent stake in Haco Industries that he had sold to South Africa’s Tiger Brands in 2008 for about KSh363 million.
“The Board of Directors of Tiger Brands has decided to dispose of the Company’s 51% stake in its Kenyan business, Haco Tiger Brands (E.A.) Limited to its local partner, who holds the remaining 49% of the company.” read a statement seen by the Kenyan Wallstreet from the Johannesburg Stock Exchange.
“A detailed review of the Haco business was conducted in the context of Tiger Brands’ long term growth strategy and core competencies. In addition to products manufactured and marketed by Haco under its own brands, the majority of Haco’s business lies in the manufacture and distribution of products under licence, which is not aligned with our current operating model of owning leading FMCG brands. Taking into account these factors , it was decided that Haco would be better positioned under local Kenyan leadership and control. This has culminated in the local partner making an offer for Tiger Brands’ 51% shareholding, at a price that was considered fair and reasonable.” noted Tiger Brands.
However, the transaction is subject to a number of regulatory approvals in Kenya. Tiger Brands also noted that the impact of the Transaction its earnings, headline earnings and net asset value per share will not be material.
“I like my business. I’m taking back my business, that’s all. I have no issue with them and they have no issue with me, ” Chris Kirubi was quoted by the Business Daily.
Tiger Brands Announcement from JSE Trading courtesy of Nutcracker Technologies;