Tiger Brands to sell meat businesses for R253m

Tiger Brands has reached an agreement with two parties to dispose of its value-added meat products (Vamp) business for R253m.

The owner of the Enterprise, Bokkie and Oros brands has agreed to sell its abattoir business to pork producer Molare for R100m, while it will sell meat-processing facilities for R153m to Silver Blade, a wholly-owned subsidiary of poultry group Country Bird.

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

The company is facing a class-action lawsuit due to the outbreak, but has denied liability.

Tiger Brands said in 2019 the Vamp business had previously been earmarked for evaluation, but the temporary closure of facilities due to the outbreak had delayed this.

In morning trade on Monday the share price of Tiger Brands was up 0.63% to R180.24, having fallen 55.11% over the past three years.

Main Image: Reuters