BY COBHAM NSA, ABUJA
Dangote Flour Mills (DFM) has divested its noodles business to makers of Indomie noodles, Dufil Prima Foods in line with the company’s policy of appraising regularly its huge business portfolio.
Group Managing Director, Dangote Flour Mills, Thabo Mabo said the assets of Dangote noodles were sold to Dufil because its investment in noodles is no longer strategic to the firm and its operational calling.
Mabo said to ensure a hitch-free change-over and smooth execution of the business deal, DFM has offered Dufil the use of some facilities on an interim basis, adding that the noodles business was part of Dangote Flour Mills, which the Dangote Group recently re-acquired from Tiger Brands.
He said the divestment is a strategic move to enable the firm focus specifically on core areas of flour and pasta production where it has substantial market share.
According to him, “Dangote Flour will now be focusing attention on flour and pasta as part of measures to be more profitable, especially in terms of improved quality, distribution and marketing.”
He also said the business deal, which came into effect on Monday, presents “is a win-win situation for Dangote Flour Mills, Dufil Prima Foods and staff of Dangote Noodles”, stressing that Dangote Flour will continue to boost its market presence through robust marketing.
Mabo stated that the sale and transfer of assets present an ideal business divestment transaction, because Dufil will immediately take possession of the company and kick off production without any delay.
By the sales agreement terms, Dufil is expected to produce and sell noodles under the brand name, ‘Dangote Noodles’ for the next two years before it can finally adopt a new name.