South African executive Fraser-Moleketi drives Tiger Brands’ $76 million Chococam exit

Tiger Brands, the Durban-based packaged goods company chaired by South African business leader Geraldine Fraser-Moleketi, is preparing to leave the Cameroon market after reaching an agreement to sell its 74.69 percent stake in Chocolaterie Confiserie Camerounaise. The buyer, Minkama Capital Limited, will acquire the stake for $76 million.

Regulators still reviewing $76 million deal

The planned sale still needs regulatory approval. According to people familiar with the terms, the deal is backed by a syndicated loan arranged by BGFIBank Group. The debt package matches the $76 million purchase price. While the full valuation of Chococam has not been shared publicly, the size of the financing points to continued interest from investors searching for steady returns in African consumer goods businesses.

Tiger Brands’ move comes as part of a broader effort to simplify its international portfolio after several years of reassessing its footprint outside South Africa. People close to the company say executives are watching the financial position of the new owners closely, given the cost of the loan and the pressure it may place on the business in its early years under new control.

Tiger Brands’ $3.4 billion pivot

With a market cap of $3.4 billion on the Johannesburg Stock Exchange, Tiger Brands remains one of the continent’s largest listed food producers. Since Fraser-Moleketi took over as chair in 2020, the group has spent much of its time stabilizing operations and regaining shareholder trust after earlier setbacks. Its shares have gained more than 15 percent this year, helped by signs that management’s turnaround efforts are gaining traction with investors.

The company’s decision to exit Cameroon follows several other restructuring moves. Earlier this year, Tiger Brands agreed to sell its canned fruit unit, Langeberg and Ashton Foods, for a symbolic one rand to a new entity formed by the Ashton Fruit Producers Co-operative and a development finance institution.

Tiger Brands repositions for steady growth

Located in the Western Cape town of Ashton, the business employs more than 3,000 permanent and seasonal workers and exports most of its canned fruit and purees. Tiger Brands also signed a contract manufacturing agreement that allows the unit to continue supplying canned fruit for its well-known KOO label.

In January, Tiger Brands completed the sale of its 24.38 percent stake in Empresas Carozzi S.A., a Chilean consumer goods company. The $240 million transaction executed through its wholly owned subsidiary Inversiones Tiger Brands South America marked another step in its plan to exit non-core foreign assets and refocus on building scale and profitability at home.