Wrap Text
FULFILMENT OF CONDITIONS PRECEDENT AND IMPLEMENTATION OF THE SALE OF TIGER BRANDS’ INTEREST IN LANGEBERG AND ASHTON
TIGER BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1944/017881/06)
Share code: TBS
ISIN: ZAE000071080
("Tiger Brands" or the "Company")
FULFILMENT OF CONDITIONS PRECEDENT AND IMPLEMENTATION OF THE SALE OF
TIGER BRANDS' INTEREST IN LANGEBERG AND ASHTON FOODS
Shareholders are referred to the transaction announcement released by
Tiger Brands on the JSE Stock Exchange News Service on Friday, 16 May
2025, wherein shareholders were advised that Tiger Brands has, through
its wholly owned subsidiary, Tiger Consumer Brands Limited, entered
into a sale of business agreement (the "SBA") for the disposal of the
Langeberg and Ashton Foods business ("LAF") as a going concern (the
"Transaction").
Shareholders are advised that all conditions precedent have been
fulfilled and, accordingly, the Transaction is effective Wednesday, 1
October 2025.
This marks a significant milestone for Tiger Brands and an exciting
new chapter for LAF. The economic importance of this iconic business,
which employs over 3 000 permanent and seasonal staff, necessitated
Tiger Brands investing considerable focus over recent years to ensure
a responsible exit.
Tiger Brands establishes a Community Trust
As part of the Transaction, Tiger Consumer Brands has committed R150
million (one hundred and fifty million rand) towards the establishment
of a Community Trust (the "Trust"), aimed at socio-economic
development initiatives benefiting the broader Langeberg community.
The Trust's philosophy centres around food security, education, youth
development, and access to adequate healthcare.
The Company believes that these four prioritised development pillars
will be transformative, compassionate, and targeted, playing a
catalytic role in breaking the poverty cycles facing many families in
the Langeberg community.
The Trust will invest a portion of the R150 million in the newly
established LAF Company ("NewCo"), in exchange for ten percent (10%)
equity shareholding, with the remaining portion retained to fund
socio-economic development initiatives from inception.
This Trust underpins Tiger Brands' commitment to distributing social
and economic benefits to the community of Langeberg long after the
Company's exit, aligned to our values and purpose of nourishing and
nurturing more lives every day.
Investment in sustainability
As part of the Transaction, Tiger Brands also commits to completing
an effluent-treatment plant upgrade with a further investment of R31
million (thirty-one million rand).
Effluent-treatment plants are an essential element of sustainable
wastewater management, particularly in water-scarce areas, where they
have been known to improve water security, protect public health, and
promote sustainable agricultural practices. This investment will
ensure that LAF continues to adhere to environmental regulations and
is in line with the Company's environmental stewardship pillar of its
sustainable futures strategy.
History of the LAF business and purchaser overview
Tiger Consumer Brands initially invested in Langeberg in the 1980s,
subsequently delisting the entity after buying out minority
shareholders. At the time, the LAF entity was one of the largest
tomato, fruit, and vegetable canning businesses, with leading brands
such as All Gold and Koo. In 2005, as the South African canned fruit
industry consolidated, Langeberg merged with family-owned business
Ashton Canning Company, forming Langeberg & Ashton Foods.
Until recently, the LAF business formed part of the international
segment of Tiger Consumer Brands, producing canned fruit and purees
for export markets (over 80% of the business), and locally supplying
the Tiger Brands Culinary Business Unit.
The purchasers of LAF are a consortium comprising the Ashton Fruit
Producers Co-operative, as well as Norwegian development finance
institution Norfund.
In line with its development mandate, Norfund's sub-Saharan African
investments prioritise the agricultural value chain, with the aim of
boosting productivity, connecting farmers to markets, promoting job
creation, and contributing to food security and economic growth. This
investment mandate, coupled with the expertise of the Ashton Fruit
Producers Co-operative, will ensure the sustainability of the
deciduous fruit industry of South Africa, and consequentially improve
the livelihoods of LAF employees and the broader community.
Conclusion
As part of Tiger Brands' portfolio optimisation strategy and capital
allocation framework, the conclusion of the Transaction will enable
management to deliver sustainable growth by deploying capital towards
the core business.
30 September 2025
Bryanston
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
Financial advisor: Absa Corporate & Investment Banking
Legal advisor: Edward Nathan Sonnenbergs Inc.
NewCo legal advisors: Baker & McKenzie Inc. & BoyLouw Inc.
Date: 30-09-2025 08:00:00
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