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Tiger Brands wants to sell listeriosis-hit Enterprise

Nov 08 2019 10:19

Tiger Brands [JSE: TBS] has received offers from companies wanting to buy its processed meats business, which was hit hard by the deadly listeriosis outbreak in 2018.

Tiger owns the Bokkie, Renown and Enterprise brands. Government found last year that the outbreak could be traced to an Enterprise factory in Polokwane.

A large class action lawsuit has been launched against Tiger Brands.

In a statement on Friday, Tiger Brands said that its board reviewed the business and concluded that "it was not an ideal fit within the Tiger Brands portfolio and that consideration be given toexiting the category by way of a disposal".

Tiger Brands said that it has since received several bids for the business and has now decided to start a formal due diligence process.

"Upon completion of this process, including the submission of binding offers by potential buyers, all disposal options will be further evaluated."

It added that the deal would not affect its "commitment" to the class action legal process.

It also announced that it would close its loss-making Deli Foods business in Nigeria.

Tiger Brands' share price gained 2% following Friday's statement. Its share price has halved since the listeriosis outbreak at the start of 2018.

tiger brands  |  business transaction
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