Dangote Industries
Limited (DIL) has explained why it bought back its former subsidiary,
Tiger Branded Consumer Goods (TBCG). It said its action is to prevent
the company from dying and also
save the job of over 3,000 Nigerians.
DIL was approached by Tiger Brands to acquire its 65.7 per cent
shares of TBCG Limited. While some stakeholders have questioned the
rationale behind the investment decision by DIL, sources close to the
Dangote Group said the company had to consider the repurchase of TBCG so
as to keep the company as a going concern, which preserves value for
the minority retail shareholders. The move also secured direct
employment for over 3,000 employees.
“Going by every indication, the future of the company was very
doubtful and that was risky for the employees, which are over 3,000
Nigerians apart from others who benefit from the company’s services
through other ancillary services. The return of DIL is therefore, a big
relief and good decision to save the jobs of the staff of TBCG,” a
market operator, who declined to be named, said.
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