LAGOS, NIGERIA — Tiger Brands, South Africa’s largest food company, said on July 4 that it has reached an agreement in principle to buy a 63.4% stake in Dangote Flour from Dangote Industries, Ltd.

The proposal has been submitted to Nigeria’s Securities and Exchange Commission for approval.

Dangote Flour Mills is listed on the Nigerian Stock Exchange, with 73.4% of the stock held by Dangote Industries, Bloomberg reported. Dangote Industries is closely held by Nigerian billionaire Aliko Dangote, who is also president of the Lagos-based Nigerian Stock Exchange.

Tiger Brands wants to expand into Africa to increase revenue from its operations outside South Africa to 30% of total sales over the next five to 10 years as the home market slows, Chief Executive Officer Peter Matlare said on May 22

Dangote Flour shares have risen 25% this year, compared with a 6% gain in the Nigerian Stock Exchange All-Share Index.