By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-The Board of Dangote Flour Mills Plc on Monday announced it has divested its 99 percent stake of the total issued ordinary share capital of Dangote Agrosacks Limited (DASL).

The flour millers said in a notice to the Nigerian stock exchange (NSE) that following a strategic review of its portfolio of businesses, aimed at aligning its core business areas with that of its core shareholder, Tiger Brand Limited, and thereby focusing on its food related businesses going forward, the company has executed a share sale and purchase agreement (‘’SSPA’’) with Dangote Industries Limited (‘’DIL’’) in respect of the sale of the company’s 84,150,000 ordinary shares of N1.00 each in DASL which represents 99.0% of the total issued ordinary share capital of DASL.

The company said the execution of the SSPA followed the receipt of approvals from its board and shareholders, as well as requisite regulatory approval from the Securities & Exchange Commission (SEC).

Dangote Flour said the divestment is in furtherance of its group-wide business optimisation initiative, aimed at ensuring that the company is efficiently structured to maximise shareholder value and sustain its market leadership position in the Nigerian food and beverages sector.

DASL was incorporated as private limited liability company on 25th August, 1998 and commenced business in May, 1999. DASL is involved in the manufacture and sale of polypropylene sacks, majorly for the companies within the Dangote Group, as well as other users.

Its products include cement bags, flour bags, sugar bags, salt bags and market bags production lines and 6 regular lines across 3 plant locations in Nigeria (Oba Akran and Israel Adebanjo in Ikeja as well as Obajana in Kogi State).