Coronation Fund Mangers, AVI Limited's biggest shareholder, supports Tiger Brands' takeover bid for the consumer brands group, its spokesperson said on Tuesday, confirming press reports.

"We have signed an irrevocable agreement to support the deal," the spokesperson said, adding that the terms of the agreement did not allow her to comment any further.

Coronation holds 25 percent of AVI and Tiger Brands has already bought a 4.6 percent stake in AVI.

Tiger Brands, South Africa's biggest consumer foods maker, said on Monday that it was mulling an R8-billion cash and shares offer for AVI to create a consumer goods firm worth about R18-billion in annual sales.

But AVI has rejected the deal, saying it made not commercial sense.

I-Net Bridge