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South African Tiger Brands to exit Kenyan market

Tuesday February 21 2017
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Kenya billionaire businessman Chris Kirubi. PHOTO | DIANA NGILA |

South African Tiger Brands will be exiting the Kenyan market after disposing of its 51 per cent stake in the local unit, Haco Tiger Brands, to billionaire businessman Chris Kirubi, who currently holds the remaining 49 per cent share.

The details on the value of the transaction, which is still subject to regulatory approvals, is however undisclosed.

Tiger Brands said Kenya remains a difficult business environment, leading to its exit.

The development comes barely two years after top executives of Haco Tiger Brands were accused of manipulating books of accounts in order to paint a rosy performance of the Kenyan unit.

READ: SA's Tiger Brands accuses Kenyan unit of profit manipulation

Haco Tiger Brands was formed after the South African firm bought a 51 per cent stake in the then Haco Industries (K) Ltd owned fully by Mr Kirubi in 2008 for an undisclosed amount. It then invested over Ksh50 billion ($500 million) in Kenya, mostly expanding the capacity of the Nairobi-based factory.

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Tiger Brands has said the impact of the proposed sale will not be significant on its earnings and net asset value per share.

Haco deals in BIC brand of pens, personal and household care products such as Ace, Jeyes, Miadi, SoSoft Motions, TCB and Bloo, while in South Africa the firm deals in fast moving consumer goods such as peanut butter, baked beans, cereals,  bread as well as personal and homecare products.

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