Tiger Brands Considers Entering Global FMCG Market
The Board of Tiger Brands, a branded food company based in South Africa that operates mainly in emerging markets, announces that the company is considering making a cash and share offer for AVI Ltd., a South African consumer products company, of 24.00 rand per share, implying a total equity value for AVI of 8.0 billion rand ($790 million). This represents a 62 percent premium to AVI's share price and to the 30 day volume weighted average trading price. The combined company aims to create a focused and balanced fast-moving consumer goods company and will result in a more efficient and effective platform from which to position the combined entity for accelerated growth.
Peter Matlare, CEO of Tiger Brands, says, "Tiger Brands has followed AVI's progress with interest for some time. It is a high quality company with an outstanding track record, good growth prospects and a management team held in high regard. This combination would allow the merged entity to improve its global competitiveness to the benefit of consumers, customers and other stakeholders and will provide a stronger base to expand further into the rest of Africa. The strategic rationale for the transaction is very compelling and provides an attractive value proposition for shareholders of both companies."
This announcement does not constitute a firm intention to make an offer. Any offer, if made, would be subject to such other terms and conditions as are standard in transactions of this nature. "We intend to achieve continuous improvement in costs and productivity as well as being committed to product innovation and appropriate brand investment," Matlare concludes.
Peter Matlare, CEO of Tiger Brands, says, "Tiger Brands has followed AVI's progress with interest for some time. It is a high quality company with an outstanding track record, good growth prospects and a management team held in high regard. This combination would allow the merged entity to improve its global competitiveness to the benefit of consumers, customers and other stakeholders and will provide a stronger base to expand further into the rest of Africa. The strategic rationale for the transaction is very compelling and provides an attractive value proposition for shareholders of both companies."
This announcement does not constitute a firm intention to make an offer. Any offer, if made, would be subject to such other terms and conditions as are standard in transactions of this nature. "We intend to achieve continuous improvement in costs and productivity as well as being committed to product innovation and appropriate brand investment," Matlare concludes.