On Tuesday, South Africa’s Tiger Brands announced that it would be entering into a share purchase agreement for the disposal of its 24.38% equity interest in Empresas Carozzi S.A. in Chile, to Carozzi S.A., a public company listed on the Santiago Stock Exchange.
Tiger Brands said the transaction will take place through its wholly owned subsidiary, Inversiones Tiger Brands South America.
Founded 126 years ago, Carozzi is a leading Chilean-based fast-moving consumer goods group operating within the grains, confectionary, sauces, dressings, baked goods, powdered beverages, ice cream and pet food categories.
Carozzi produces and markets food products in various countries throughout Latin America.
Tiger Brands said in its announcement on the JSE news service, SENS that it acquired an initial interest in Carozzi in 1999, which was increased to 24.38% by 2001.
“The rationale for the original investment was to facilitate the expansion of Tiger Brands' geographical presence within the Latin American region. Other objectives included driving a "connect and develop" research and development model where key learnings could be leveraged from Carozzi. Carozzi has performed pleasingly over the past 20 to 25 years, delivering notable returns and dividends over this time,” Tiger Brands said.
“Tiger Brands' revised vision, as communicated in December 2024, is to grow as Southern Africa's leading consumer goods company – placing consumers at the centre of everything through our people and with the most accessible loved brands. As such, further expansion into the Latin American region is no longer a strategic priority for the Company,” the company said.
“In addition, Tiger Brands' portfolio optimisation strategy is underpinned by ensuring the company focuses on and deploys capital and resources in the areas within which the company has direct control. Accordingly, following an extensive strategic and financial review, the decision was made to pursue a disposal of Tiger Brands' interest in Carozzi,” Tiger Brands further stated.
The company said it entered into negotiations with CSA, culminating in the transaction.
“The Transaction provides an ability for Tiger Brands to crystalise the value of its investment in Carozzi at an attractive valuation and marks another milestone in the simplification of Tiger Brands' portfolio. Management remains committed to further refining Tiger Brands' portfolio through targeted disposals where these businesses are deemed non-core,” Tiger Brands said.
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