By Agency Reporter

Thursday, 25 Nov 2010

As part of moves to enhance profitability and returns to shareholders, the management of UAC of Nigeria Plc, has agreed in principle to form a strategic partnership with Tiger Brands Limited, a leading South African conglomerate.

The partnership is, however, subject to approvals by the company’s shareholders and regulatory authorities.

In the joint venture by both conglomerates, UACN will hold a 51 per cent equity stake, while Tiger Brands will hold 49 per cent. The two companies will exercise a joint management control in the venture.

According to a statement on Wednesday, it is a milestone in the operations of UACN since it is its first time of acquiring another conglomerate.

The statement quoted the Group Managing Director of UACN, Mr. Larry Ettah, as saying that the Joint Venture would consist of UACN‘s food and dairy operations, as well as the SWAN water business.

These operations are custodians to Nigeria‘s heritage brands such as Gala sausage rolls, Supreme ice-cream and SWAN spring water.

According to the statement, this Joint Venture provides UACN with the business platform for expansion into the fast moving consumer goods product categories in which it already has expertise and other new portfolios relevant to the Nigerian market.

Ettah explained that the management and employees of UACN had transformed the performance of the business over the last few years, putting in place a clear strategy and a strong focus on operational excellence.

He added that the joint venture would strengthen the position of UACN as a leading player in the Nigerian economy.

He said, ”This is a milestone for UACN, the staff, management and stakeholders. UACN is an organisation with a sound strategy and has the potential to grow even further as a partner of the Tiger Brands Group.

“The financial strength and complementary product lines of Tiger Brands will enable us to pursue substantial growth opportunities. This Joint Venture provides an opportunity to create an industry leader with complementary brands, assets, skills and leading positions in chosen market categories.”

Source: Punch