South African food company Tiger Brands has agreed to buy a Kenyan milling and confectionery firm for $25 million, the Business Day newspaper reported on Tuesday, citing a company executive.
The Johannesburg-based maker of bread and breakfast cereal will acquire flour milling company Rafiki Mills, corporate affairs group executive Alex Mathole told the newspaper.
“Although an agreement has been signed the conditions precedent (have) yet to be fulfilled,” Mathole was quoted as saying.
A spokesman for Tiger Brands was not immediately able to comment.
The acquisition of Rafiki, the fourth-largest miller in East Africa’s largest economy, would be the latest move by Tiger Brands to increase its presence in fast-growing sub-Saharan Africa.
In 2012 it acquired 63 percent of Nigeria’s Dangote Flour Mills for $188 million. It already has a presence in Kenya through its Haco Tiger Brands unit.