Why Dangote resigned as Chairman of Dangote Flour Mill

*Company may fold up soon – Analyst
Africa’s richest man, Aliko Dangote, has resigned his position as the chairman of Dangote Flour Mill (DFM). His resignation came as a result of Tiger Brand’s decision to stop funding the company.
Dangote resigned alongside Olakunle Alake, Asue Ighodalo and Arnold Ekpe immediately after the announcement, which may mean the end of DFM.
Tiger Brands is a South African company and it owns a 65 per cent stake in Dangote Flour Mill. Dangote only has 10 percent share, but the company is called by his name.
Recently, Tiger Brands announced that it will stop funding Dangote Flour Mill because the company has not yielded favourable dividends after they acquired 65 per cent share of the company in 2012 in a deal worth $200 million. This made Aliko Dangote, Olakunle Alake, Asue Ighodalo and Armold Ekpe to relinquish their positions in the company.
Business analysts are speculating that this step by Tiger Brands may lead to gradual liquidation of Dangote Flour Mill. Anthony Gerard, an industry analyst with Investec Security, says: “Without Tiger Brands injecting money, it is the end of the line for Dangote Flour Mill”.