Co-producer of Gala sausage roll, Tiger Brands, has agreed to divest from UAC of Nigeria Plc (UACN).
The South African company decided to sell its 49 percent stake in UAC Foods Limited, one of the subsidiaries in UACN, 10 years after it first acquired the stake in the food and beverage business.
The 49 percent is a minority stake which gave Tiger Brands a license to produce and distribute selected products such as Gala sausage rolls, Supreme Ice Cream, and Swan water in Nigeria.
In a notice sent to the Nigerian Exchange Group on Saturday, Tiger Brands said the 49 percent stake would be sold to UACN in a buyback agreement expected to be sealed in September.
This is the second buyback deal involving Tiger Brands as the company had also sold its 67.5 percent in Dangote Flour Mills which was acquired in 2012.
Dangote Group acquired the majority stake just three years after Tiger Brands had invested $200 million in the company.
The $76 million loan the company gave to Dangote Flour Mills was also written down.
The firm also sold its Deli Foods division in 2020.
This came just 10 years after it acquired a 100 percent stake in the unit following a dispute with its distributor, Benny, and Jolly Jus products.
Tiger Brands still operates in Cameroun, Ethiopia, Kenya, and Zimbabwe.