Investors greeted Tiger Brands’ CEO departure well
Shares in
Tiger Brands [JSE:TBS] hit a four-month high on news that its CEO is leaving “at the end of the year,” reports
Fin24. The company is now looking for a replacement.
Shares hit a high of R312.00, a rise of 5.7%, adds
Fin24. This as the company’s seen its share price fall 16% this year so far.
Tiger Brands didn’t give any details regarding the CEO’s reasons for leaving, says
IOL. But he will finish up in his post on 31 December.
But there have been pressures on the company as its “Nigerian venture Dangote Flour Mills, bought in 2012, has continued to cause pain to investors,” notes
BDLive. This had led Tiger Brands to write down “about two-thirds of the transaction’s value”.
Its Nigerian venture isn’t the only aspect of concern.
Tiger Brands is losing vital market share to competitors
Sumil Seeraj, an analyst with Standard Bank, told
Bloomberg that “investors were very concerned over the decisions that have been made”. For instance, the loss of a “significant market share in bakeries”. This allowed competitors to take advantage.
Pioneer Food Group [JSE:PFG] is now a major competitor to Tiger Brands in terms of bread sales, adds
Bloomberg. This year, Pioneer’s shares have risen 36%.
At time of writing, shares in Tiger Brands were trading 5% higher at R310.79.
The new CEO of Tiger Brands will have to steer Tiger Brands towards better times ahead and claw back lost market share.
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