Dangote Sells Noodle Plants To Rival For N3.75bn

[fastum]

4:08am On Nov 15

A unit of Dangote Flour Mills, Dangote Noodles Limited, has sold two production lines to rival pasta maker, De United Foods Industries, for N3.75bn ($12.26m), the company said on Tuesday.

De United said it had signed an agreement with Dangote Noodles to buy plants at its Ikorodu and Calabar factories. It will also buy stock worth N383.94m, according to a report by Reuters.

The deal comes after Dangote sold a small stake in its cement business to foreign investors in a one-off stock market deal valued at N27bn.

Dangote Flour Mills, majority owned by Africa’s richest man, Aliko Dangote, had said it wanted to quit the noodles business to focus on flour and pasta production.

Nigeria’s noodle market is fiercely competitive and De United, with a market share of around 70 per cent, is seeking to consolidate the sector.

Privately-held Dangote Industries Limited, with interests in agriculture, real estate and truck assembly, bought back the flour unit it had sold to South Africa’s Tiger Brand for $1 in 2015 after it posted losses.

Shares in Dangote Flour Mills have more than doubled so far this year after rising by 276 per cent last year. The stock price was down by 3.17 per cent on Tuesday at N9.20 naira.

Dufil Prima Foods, the parent of De United Foods, is a privately held company set up over two decades ago, which has grown to become the largest pasta maker in West Africa.

De United said the transaction had been approved by both companies and the regulators.

A banking source close to the deal said that De United would continue to produce noodles under the Dangote brand for two years after the acquisition.

In July Dufil Prima Foods said it would raise N40bn in the local debt market to broaden its funding base.

 

[kawombe]

Pesa ju ya pesa tu

 

[Massanda OMtima Massanda]

4:08am On Nov 15

A unit of Dangote Flour Mills, Dangote Noodles Limited, has sold two production lines to rival pasta maker, De United Foods Industries, for N3.75bn ($12.26m), the company said on Tuesday.

De United said it had signed an agreement with Dangote Noodles to buy plants at its Ikorodu and Calabar factories. It will also buy stock worth N383.94m, according to a report by Reuters.

The deal comes after Dangote sold a small stake in its cement business to foreign investors in a one-off stock market deal valued at N27bn.

Dangote Flour Mills, majority owned by Africa’s richest man, Aliko Dangote, had said it wanted to quit the noodles business to focus on flour and pasta production.

Nigeria’s noodle market is fiercely competitive and De United, with a market share of around 70 per cent, is seeking to consolidate the sector.

Privately-held Dangote Industries Limited, with interests in agriculture, real estate and truck assembly, bought back the flour unit it had sold to South Africa’s Tiger Brand for $1 in 2015 after it posted losses.

Shares in Dangote Flour Mills have more than doubled so far this year after rising by 276 per cent last year. The stock price was down by 3.17 per cent on Tuesday at N9.20 naira.

Dufil Prima Foods, the parent of De United Foods, is a privately held company set up over two decades ago, which has grown to become the largest pasta maker in West Africa.

De United said the transaction had been approved by both companies and the regulators.

A banking source close to the deal said that De United would continue to produce noodles under the Dangote brand for two years after the acquisition.

In July Dufil Prima Foods said it would raise N40bn in the local debt market to broaden its funding base.

Embezzlement killed National Milling Cooperation which I believe would have been far bearing in mind that food is always marketable! It is really really bitter noticing how other food milling mores do wonderful businesses!

 

[Mzuvendi]

Embezzlement killed National Milling Cooperation which I believe would have been far bearing in mind that food is always marketable! It is really really bitter noticing how other food milling mores do wonderful businesses!

Don't you think you have misplaced your concerns here? NMC and Dangote are two unrelated entities.

 

[Massanda OMtima Massanda]

Don't you think you have misplaced your concerns here? NMC and Dangote are two unrelated entities.

Not really! My concern is purely and simply a reflection on why such foreign food processing entities (Dangote for that matter) prosper and not ours (NMC for the same matter)?
Digest and cheers!

 

[Mzuvendi]

Not really! My concern is purely and simply a reflection on why such foreign food processing entities (Dangote for that matter) prosper and not ours (NMC for the same matter)?
Digest and cheers!

Look it from a business perspective. If you don't want to be a producer or a seller, you will end up to be consumer or a buyer. That's the situation we are in. NMC had all the tools, but it wasn't run as a business entity. So who's to blame?

 

[Massanda OMtima Massanda]

Look it from a business perspective. If you don't want to be a producer or a seller, you will end up to be consumer or a buyer. That's the situation we are in. NMC had all the tools, but it wasn't run as a business entity. So who's to blame?

That was exactly my perception! Why do we fail when others succeed? Is it our economists or our public entrepreneurs or our politicians or our auditors (both internal and external) or our laws against embezzlement / corruption / theft / stealing of public properties? Is there a way we can restart it or we let the bygone be bye gone?

 

[Mzuvendi]

That was exactly my perception! Why do we fail when others succeed? Is it our economists or our public entrepreneurs or our politicians or our auditors (both internal and external) or our laws against embezzlement / corruption / theft / stealing of public properties? Is there a way we can restart it or we let the bygone be bye gone?

I am afraid probably I won't have an answer that would satisfy you. But, here's the thing. As a nation, we have spent considerable amount of resources to educate and train doctors, engineers, and other professionals. We still have a long way to go but the number of professionals in various areas in much better than the number we had in 1961. On contrary, when it comes to entrepreneurship skills, I believe we have left those skills to grow organically.

 

[Massanda OMtima Massanda]

I am afraid probably I won't have an answer that would satisfy you. But, here's the thing. As a nation, we have spent considerable amount of resources to educate and train doctors, engineers, and other professionals. We still have a long way to go but the number of professionals in various areas in much better than the number we had in 1961. On contrary, when it comes to entrepreneurship skills, I believe we have left those skills to grow organically.

Maybe the question is and still continues to be: why do we fail in prospering, as a nation, in spite of having all required resources and personnel?

 

[Mzuvendi]

Maybe the question is and still continues to be: why do we fail in prospering, as a nation, in spite of having all required resources and personnel?

I am afraid to say that we don't have all resources. Think about intangible resources such as skills and good policies. Do we have them?

 

[Massanda OMtima Massanda]

I am afraid to say that we don't have all resources. Think about intangible resources such as skills and good policies. Do we have them?

It might sound funny to notice that in this same country there are private companies which have been vehemently growing despite your doubt of bad policies and lack of skills! By the way, for how long do we have to wait to have those intangible resources (skills and good policies)?

 

[Mzuvendi]

It might sound funny to notice that in this same country there are private companies which have been vehemently growing despite your doubt of bad policies and lack of skills! By the way, for how long do we have to wait to have those intangible resources (skills and good policies)?

When I say skills I don't imply that there's no skills at all. There some skills there, and some are really exceptional. However, when you bring into equation the population of the country coupled with its size, you will find out that there's a very big room for improvement. Furthermore, we haven't entirely eliminated the colonial mentality. For example, some people still think that the only way they will become bigger is to make others smaller.

I believe need to talk the talk and walk the walk. For example, if the government says it has a policy to educate its people, it should make sure that people are educated accordingly. That's the only way we can see the intangibles come into play.

 

[Massanda OMtima Massanda]

When I say skills I don't imply that there's no skills at all. There some skills there, and some are really exceptional. However, when you bring into equation the population of the country coupled with its size, you will find out that there's a very big room for improvement. Furthermore, we haven't entirely eliminated the colonial mentality. For example, some people still think that the only way they will become bigger is to make others smaller.

I believe need to talk the talk and walk the walk. For example, if the government says it has a policy to educate its people, it should make sure that people are educated accordingly. That's the only way we can see the intangibles come into play.

I agree with you in some way but I think the worm that eats our intellectuals is lack of integrity! Most of them want to enrich themselves in an overnight by embezzling the public properties!
My thinking anyway!

 

[Mzuvendi]

I agree with you in some way but I think the worm that eats our intellectuals is lack of integrity! Most of them want to enrich themselves in an overnight by embezzling the public properties!
My thinking anyway!

You are correct. I have overlooked integrity as one of the important variables. I will add that into my list of intengiables. These are things you can't touch, see, or buy in the open market, but they are very critical on the well being of companies, communities, and of course nations. For example, Warren Buffet, the legendary American investor, when he hires people to work in his business empire he looks for intelligence, energy, and integrity. If an applicant lacks the latter, he/she fails the interview completely.

I have one though. How do we instill the concept of integrity when we deal in the national matters? It seems to me that many Tanzanians don't have any qualm to steal government properties or abuse their positions?

For example, when I was a student in Tanzania, my life revolved around achieving academic excellence by all means necessary so I could pass my exams and go to the next level. To me my academic life was about competing for scarce resources. When I look back, I feel that other students took the same approach and have continued to so in their professional lives.

 

[Massanda OMtima Massanda]

You are correct. I have overlooked integrity as one of the important variables. I will add that into my list of intengiables. These are things you can't touch, see, or buy in the open market, but they are very critical on the well being of companies, communities, and of course nations. For example, Warren Buffet, the legendary American investor, when he hires people to work in his business empire he looks for intelligence, energy, and integrity. If an applicant lacks the latter, he/she fails the interview completely.

I have one though. How do we instill the concept of integrity when we deal in the national matters? It seems to me that many Tanzanians don't have any qualm to steal government properties or abuse their positions?

For example, when I was a student in Tanzania, my life revolved around achieving academic excellence by all means necessary so I could pass my exams and go to the next level. To me my academic life was about competing for scarce resources. When I look back, I feel that other students took the same approach and have continued to so in their professional lives.

Integrity should always be a principal core value in any society. For a well organized society, no one ventures for public office without this element. But how do we identify someone's integrity alignment? Everyone has his / her historical / behavioral background which should be attached to HR and auditing procedures and hiring processes. Likewise, in hiring processes there is a need to measure someone's strength / energy, seriousness and resourcefulness, because, in life, each one deals with critical moments that define a person!
It is likely true, as you have mentioned, that many Tanzanians never hesitate in stealing government properties or abuse their power of office. The problem here is lack of law and order infection because of corruption (again lack of integrity)! In other words, we need to seriously wage a war against corruption and power abuse or have strong impeachment procedures / executions by concerned boards which deal with such crooks!

 

[Shamioli]

I totally consent with u, that integrity is one of the most important qualities of a human being and should be nurtured right from childhood by parents in particular and the community in general. As for now the Govt. should continue to stress and probably sustain the quality in schools and colleges curricular to cement the accumulated integrity in our children , youths and ultimately grown ups.