Kenyan multi-millionaire Chris Kirubi has reportedly acquired a 51% stake in fast moving consumer goods manufacturer Haco Tiger Brands East Africa from Tiger Brands of South Africa, Forbes reports.
The acquisition means that Kirubi, 77, has taken back full control of the company after selling the 51% stake in the firm in 2008 –then trading as Haco Industries— to the South African consumer goods giant. Kirubi now owns the company completely.
“As previously reported, all suspensive conditions with regard to the disposal of Haco Tiger Brands (E.A.) Limited were fulfilled and the transaction was successfully concluded in December 2017,” Tiger Brands said in a trading update.
The partnership between Kirubi and Tiger Brands had been a turbulent one. For one, both parties had disagreed over Haco’s strategic direction. While Kirubi was in favor of sticking to Haco’s traditional model of manufacturing and distributing various consumer goods under license, Tiger Brands was keen on promoting its own brands in Kenya and ditching Haco’s licensing agreements. Also, in 2015, an $8 million accounting fraud was discovered at Haco, a finding that hurt the Tiger Brand’s consolidated earnings.
Haco has agreements with several multinationals to manufacture and sell their brands in Kenya and East Africa.
Kirubi, one of Kenya’s most prosperous men, is the largest shareholder in Nairobi Stock Exchange-listed investment company Centum Investments. His 30% stake in the business is worth roughly $100 million. He also owns the iconic International House in Nairobi, as well as leading media outfit, Capital Group.
