UPDATE 1-Tiger Brands buys 63 pct of Nigeria's Dangote Flour

(Adds details, background)

LAGOS, Oct 4 (Reuters) - Nigerian billionaire Aliko Dangote on Thursday sold 63 percent of Dangote Flour to South African consumer goods firm Tiger Brands in a deal worth $188 million, brokers said.

The sale of 3.1 billion shares on the Nigerian Stock Exchange was done at 9.50 naira ($0.06) per share, after regulators' approval last month.

The deal is Tiger Brands' third and its biggest yet in Nigeria, Africa's second-largest economy with 160 million people, which is seen as a growth area for consumer and food products.

The billionaire's holding firm Dangote Industries Limited will retain a 10 percent stake in the flour miller after the

Shares of Dangote Flour were trading flat at 8.59 naira on the local bourse at 1315 GMT, as brokers said the deal had already been priced in.

(Reporting by Mayowa Oludare; Editing by Tim Cocks and Hans-Juergen Peters)

((tim.cocks@thomsonreuters.com)(+234 803 400 4248))