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LATEST NEWS
Tiger Brands completes strategic review of its healthcare interests
Nick Dennis, Chief Executive of Tiger Brands, said the board had completed a strategic review of the healthcare interests and taken an in-principle decision to exit the Adcock Ingram business.
"Following a careful and considered evaluation by the board, we have come to the conclusion that Tiger Brands will be best positioned to maximise shareholder value by focusing on its core fast moving consumer goods business and exiting the pharmaceutical and hospital products businesses."
Dennis said following the board's evaluation, it had mandated UBS South Africa (Pty) Ltd to assist it in considering all options regarding the future of the Adcock Ingram business. The Consumer Healthcare (personal care, baby care and homecare) business would remain a part of Tiger Brands due to its strong fast moving consumer goods (FMCG) focus.
"The board is evaluating the best manner to enhance shareholder value. This decision is an important step in our strategy to build Tiger Brands into a world class FMCG company."
Dennis said Adcock Ingram was a successful business with a strong track record of profitable growth, with turnover and operating income growing at a compound average growth rate of 16% and 17% per annum respectively over the past 3 years.
"Adcock Ingram is a business we are extremely proud of and has over the years been a natural fit within the Tiger Brands group. Although Adcock Ingram is well positioned for continued growth, the board recognises that the characteristics and growth prospects of a healthcare business differ from those of a focused FMCG company."
As a consequence, Dennis said the board believed that shareholder interests would be best served through a separation of the two businesses. "This will allow the businesses to be valued independently of each other."
At this stage, the board has placed no timeline on a decision with regards to the exact method of separation of the company's healthcare interests. Dennis said shareholders would be notified of any new developments in due course.
"We are carefully assessing all our options which will best serve the interests of our shareholders. We will keep them informed of any further developments."
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