SOUTH AFRICA – Tiger Brands said on Friday that CEO Peter Matlare has reached agreement with the board regarding “his decision” to step down as CEO.

Mr Matlare’s tenure has been under strain for some time as the food producer’s Nigerian venture Dangote Flour Mills, bought in 2012, has continued to cause pain to investors.

The stock exchange announcement did not mention the reasons behind Mr Matlare’s departure. The company’s share price was up 4.3% at R309 about 15 minutes after the announcement.

Recently, Tiger Brands had written down even more of the value of the R1.5bn deal, with total impairment charges now equal to about two-thirds of the transaction’s value.

Mr Matlare had earlier taken “full responsibility” for the write-downs, saying that substantial new flour capacity had come on stream in Nigeria between 2010 and 2012, when the deal was negotiated.

The Tiger Brands board said Mr Matlare would remain in his position until the end of December. The search for his successor was under way.