Aliko Dangote, Africa’s richest man, on Tuesday resigned from the board of Dangote Flour Mills after South African firm, Tiger Brands announced it was withdrawing funding from the flour and pasta producer.
Mr Dangote resigned alongside three other Directors; Olakunle Alake, Asue Ighodalo and Arnold Ekpe immediately after the announcement.
Tiger Brands in an interim announcement to the Nigerian Stock Exchange, explained that the company has reached a decision not to provide any further financial support with respect to its investment in tiger branded consumer goods.
It is currently exploring various alternatives with regard to its investment in the company.
Shareholders have been advised to exercise caution when dealing in the company’s securities until a further announcement is released.”
According to Reuters, Tiger Brands has not made money from Dangote Flour Mills (DFM) since paying nearly $200 million for a 65 percent stake in the firm back in 2012.
Aliko Dangote holds 10 percent of the company’s equity.