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Famous Brands goes Big. Mr Bigg's to be precise!

Famous Brands have released an important announcement this morning in which they will be acquiring 49 percent of UAC restaurants Limited from parent group, UAC of Nigeria Plc. Primarily for the Mr. Bigg's opportunity. Who? Mr. Bigg's, which is Nigeria's first franchise chain and has been around since the 1960's, according to their Wikipedia entry. The logo colours are Red and Yellow, yes, I have seen that before! Mr. Bigg's Wiki entry, which references UAC's website (which in turn references the Mr. Biggs website) has this to say about the menu: "Mr. Bigg's specialty is the meat pie. A common lunch might also include scotch eggs, a sugared donut, chicken, and a soft drink. While western fare such as hamburgers is served, Nigerian delicacies such as jollof rice and moin moin are more popular. Birthday cakes are also a popular product, and Mr. Bigg's bakery offers cakes and pastries."


I had a look myself at what a moin mois is. According to Wiki (the authority on all things): "Nigerian steamed bean pudding made from a mixture of washed and peeled black-eyed peas, onions and fresh ground peppers" Perhaps not everybody's cup of tea. As luck would have it, I actually chatted to a chap at a birthday get together this weekend, and he travels to Nigeria a lot. He says he does not like their food at all, but I guess he originates from Bloem, perhaps not as adventurous on the food front as someone from ... I don't know, Cape Town?


The price of the transaction does not necessitate that the company releases the actual number. The price. I think that the rule suggests that if it is less than 3 percent of the market capitalisation of the business, then the price paid need not be revealed. The market cap as of last close was 9.775 billion ZAR. Three percent of that is less than 300 million ZAR. Which I guess is right, Famous Brands are buying less than half of what is a fairly old, but only 165 footprint across Nigeria. The most exciting country in Africa from an investment point of view, the country is not only the most populous but arguably the most entrepreneurial driven crowd across the continent. Good, this is a good business that commands a premium to the market for a reason.


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