Skip to main content

Tiger Brands considers disposing of value-added meat business

| Supplier news

SA’s largest food producer, Tiger Brands, is considering disposing of its value-added meat products business (Vamp), saying on Friday it had determined it was not an ideal fit in the business.

The company had already received a number of offers for the business, the owner of the Enterprise, Bokkie and Oros brands said on Friday.

 

A listeriosis outbreak in 2018 had left about 200 people dead, leading the company to recall its processed meats and close four meat processing facilities. Its share price had also plunged 40% in 2018, falling a further 11.7% in 2019.

The company is facing a class-action lawsuit as a result of the outbreak, but has denied liability.

Tiger Brands said on Friday the Vamp business had previously been earmarked for evaluation, but the temporary closure of facilities due to the outbreak had delayed this.

“With the business having reopened at the beginning of the 2019 financial year, the board considered it appropriate to initiate the review, which confirmed that the Vamp business was not an ideal fit within the Tiger Brands portfolio and that consideration be given to exiting the category by way of a disposal,” the statement read.

The group’s share price was up 1.98% to R225.13 in morning trade.

 

Pin It

Related Articles

By: Daily Investor  Ramokgopa referred to South African municipalities owing Eskom R78 billion, which is increasing at an alarming rate.
By: Se-Anne Rail - IOL Knorr is recalling its brown onion gravy sachets after manufacturers have discovered some packets may contain traces of cow’s milk and soy.
By: Bianke Neethling – Daily Investor Eskom has done a tremendous job of limiting unplanned outages and improving the performance of its coal fleet, which bodes well for load-shedding in South Africa going forward.
By: Shaun Jacobs – Daily Investor In June, the Constitutional Court ruled in favour of Coronation in its legal battle against SARS regarding the profits earned by its Irish-based subsidiary, Coronation Global Fund Managers (CGFM). 
By: Myles Illidge – My Broadband Eskom is cracking down on corruption surrounding its operations and service providers, and using new technologies and systems to minimise opportunities for criminal activity.