Reports making waves online disclosed that the Dangote noodles section has been bought by Dufil Prima food, the maker of indomie noodles.
According to Dangote, the option to sell off the section to indomie noodles is a more feasible option.
The company in Tuesday, April 18 disclosed the sale of one of its asset and added that so as to level the transition, they had given Dufil the chance to make use of some of its facilities for the time being.
The business was part of the DFM which Dangote group recently repurchased from Tiger Brands.
The Dangote flour mills MD, Thabo Mabo, said the disposal was part of the strategies of paying more attention to core areas of flour and pasta production, where the company has a great market share.
He added that with the disposal, the group would focus on its vigor in flour and pasta and also increase their profitability by perfecting areas of quality, distribution and marketing.
The sale, which was effective last Monday, according to Mabo, is a good situation for Dangote Flour Mills, Dufil Prima foods and employees under Dangote noodles as Dangote Flour has a chance of having more market share through enlarged marketing.
The MD said the sake and transfer was ine of the most concise disposals with the purchasing company taking over and starting work immediately.
In the disposal agreement terms, Dufil Prima Foids will continue to manufacture and sell noodles with ‘Dangote Noodles’ brand name for two years before changing the name.
Deepak Singhal, the CEO of Dufil Prima Foods, verified the transaction and descriped the deal with Dangote as strategic because Dufil is seeking to dominate the Noodles market.
He said the acquisition would improve and sustain its market share and also a earning a strategic advantage in terms of several range of noodles products in the market.
He also reaffirmed that Dufil wont be stopping the production of noodles but was starting production immediately with Dangote brand name.
Singhal added that to ensure a perfect transition and production, most of the former employees of Dangote Noodles would be retained in the takeover.
With the transition, some employees of Dangote noodles would move to Dufil, while the remaining workers had been substantially compensated with jaw-dropping severance pay for their services to the company.
Singhal further disclosed that the terms of the severance pay was agreed with the appropriate trade unions and the redundant employees were settled immediately so that those transited will start on a fresh agreement while those not retained wont have to wait for their entitlements.