Ajinomoto Co. agreed to buy a one-third stake in Promasidor Holdings Ltd. for $532 million to expand in the African market for powdered beverages and seasonings. The Japanese maker of monosodium glutamate is looking to take advantage of Promasidor’s sales and distribution network across 36 countries in the region, the Tokyo-based company said in a statement on Tuesday.
The purchase of a stake in Promasidor, registered in the British Virgin Islands, builds on Ajinomoto’s existing presence in Africa. It established operations in Nigeria in 1991, and followed that up with businesses in Egypt and Ivory Coast 20 years later. The shareholding will also give Ajinomoto a say in Promasidor’s management and operations via representation on the board. The company, 75 percent owned by Plexus Investments Ltd., had net sales of $673 million in 2015. Source: Bloomberg