African billionaire Alike Dangote quits Dangote Flour Mills board

Dangote

African billionaire Alike Dangote has resigned from the board of Dangote Flour Mills (DFM) as South African’s majority owner Tiger Brand announced funding cut to the pasta firm.
Tiger Brands announced on Monday it has cut off funding to its Nigerian unit as the South African consumer goods maker launched a review of its investment in the loss-making pasta and flour maker.
Already, shares of the local pasta maker fell 4.7 percent on the Nigerian Stock Exchange (NSE) following the announcement of the funding cut by the parent company.
DFM, which has now changed its name to Tiger Branded Consumer Goods Plc has been recording losses since is majority shares were acquired three years ago by the South African firm for $200 million.
In a notice to the Nigerian Stock Exchange (NSE), the company said three other directors, Olakunle Alake, Asue Ighodalo and Arnold Ekpe have also resigned along Aliko Dangote from the board.
“The Board of Directors of Tiger Branded Consumer Foods Plc is considering the implications of these developments for the Company, and further information will be communicated in due course,” the NSE statement noted.
NSE said In the meantime, shareholders are advised to exercise caution when dealing in the company's securities until a further announcement is released."

After he sold 65 percent majority shares to Tiger Brand three years ago, Dangote retained 10 percent equity in the company through Dangote Industries.