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TIGER BRANDS LIMITED - Tiger Brands Progresses Portfolio Optimisation Initiatives

08 November 2019 - 07:55 AM
Tiger Brands Progresses Portfolio Optimisation Initiatives

Tiger Brands or the Company
(Incorporated in the Republic of South Africa)
(Registration number 1944/017881/06)
Share code: TBS
ISIN: ZAE000071080


As part of the strategic review conducted by the Board in
2017, the role of Value Added Meat Products (VAMP) within the
Groups portfolio had been earmarked for further evaluation,
given the business unique value chain and the perishable
nature of its underlying products. The unfortunate events of
2018, which led to the temporary closure of the manufacturing
facilities, delayed this evaluation. With the business having
re-opened 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.

As such, on 6 November 2019, following receipt of several
indicative offers, the Board approved commencement of a formal
due diligence process. Upon completion of this process,
including the submission of binding offers by potential
buyers, all disposal options will be further evaluated. The
Company will issue further communication as the process
reaches key milestones.

The above actions do not, in any way, affect Tiger Brands
commitment to the Class Action legal process which is
currently underway. A status update related to the Class
Action was released on SENS on 17 April 2019.

Similarly, a thorough review of Deli Foods in Nigeria was
conducted. Despite significant management effort, the business
continued to incur losses. Following a thorough evaluation of
all alternatives, the Board approved the cessation of
operations of Deli Foods, which commenced with effect from 22
October 2019. All formalities relating to the closure are
expected to be completed within the next few months. The
impact of the closure of Deli Foods on Tiger Brands net asset
value and headline earnings per share is not material.

The above initiatives are below JSE transaction thresholds and
disclosed for information purposes.

8 November 2019
J.P. Morgan Equities South Africa Proprietary Limited

Date: 08/11/2019 08:55:00
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