Tiger Brands considers disposing of value-added meat business
SA’s largest food producer, Tiger Brands, is considering disposing of its value-added meat products business (Vamp), saying on Friday it had determined it was not an ideal fit in the business.
The company had already received a number of offers for the business, the owner of the Enterprise, Bokkie and Oros brands said on Friday.
A listeriosis outbreak in 2018 had left about 200 people dead, leading the company to recall its processed meats and close four meat processing facilities. Its share price had also plunged 40% in 2018, falling a further 11.7% in 2019.
The company is facing a class-action lawsuit as a result of the outbreak, but has denied liability.
Tiger Brands said on Friday the Vamp business had previously been earmarked for evaluation, but the temporary closure of facilities due to the outbreak had delayed this.
“With the business having reopened 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,” the statement read.
The group’s share price was up 1.98% to R225.13 in morning trade.