CM Court: Tiger Brands' Chococam Sale to Minkama Capital Valid

• Tiger Brands has sold its majority stake in Chococam to Minkama Capital.
• The sale is expected to be finalized by the second half of 2026 after regulatory approvals.
• Employees' representatives have criticized the opacity surrounding the sale and the unilateral management of social funds.
• The transfer of employment rights and benefits, including Parts A and B, has become a contentious issue.
• The situation highlights compliance exposures related to corporate transactions and the importance of considering employment rights and benefits.

The employees' representatives have criticized the opacity surrounding the sale, the failure of administrative appeals, and the unilateral management of social funds by the company's leadership.

Tiger Brands, a South African conglomerate, has sold its majority stake in Chococam, a Cameroonian chocolate manufacturer, to Minkama Capital, an investment fund. The sale, initiated in late 2025 for approximately 46 billion CFA francs, is expected to be finalized by the second half of 2026 after regulatory approvals from the CEMAC and BEAC authorities. However, the transaction has been marred by controversy and social unrest at the Douala-Bassa factory.

The employees' representatives have criticized the opacity surrounding the sale, the failure of administrative appeals, and the unilateral management of social funds by the company's leadership. They are demanding written guarantees to protect their jobs and rights. The transfer of employment rights and benefits, including Parts A and B, has become a contentious issue.

The employees' representatives have also raised concerns about the mismanagement of social funds and historical employee benefits. They claim that the company's management has been restrictive in granting loans and has kept the funds in the same account as the company's assets.

The sale is subject to regulatory approvals from the CEMAC and BEAC authorities. The transaction is also influenced by an ongoing dispute between businessman Baba Ahmadou Danpullo and South African interests. Additionally, the employees' representatives have raised concerns about compliance exposures related to the transfer of employment rights and benefits.

According to contract provisions and agreements, departing employees with over three years of service are entitled to receive Parts A and B, which represent a complementary pension. However, the company's management has allegedly refused to honor these payments, sparking widespread concern among employees who have been forced to leave the company in large numbers.

The situation highlights the importance of considering employment rights and benefits during corporate transactions. Lawyers advising clients on such deals should be aware of potential compliance exposures and ensure that their clients are meeting their obligations.

The Chococam sale has significant implications for employees, investors, and regulators in Cameroon and beyond. The controversy surrounding the transfer of employment rights and benefits raises questions about corporate social responsibility and compliance with labor laws.

As companies continue to restructure and divest assets, it is essential to prioritize transparency and communication with stakeholders, particularly employees who may be affected by such transactions. The Chococam case serves as a reminder that corporate deals can have far-reaching consequences for all parties involved.

Lawyers advising clients on the Chococam sale should watch for potential compliance exposures related to the transfer of employment rights and benefits, including the payment of Parts A and B to departing employees with over three years of service.

Source: Original reporting via Actu Cameroun