Singapore-based agriculture company, Olam International Limited is set to buy Dangote Flour Mill Plc for an enterprise value of N130 billion.
According to the Managing Director and Chief Executive Officer, Olam Grains and Animal Feed, K.C.Suresh, the acquisition of Dangote Flour Mills Plc supports the strategy of the Grain and Animal Feed business, one of its prioritised platforms for growth in Nigeria.
“We are confident about the growth prospects in this country and this acquisition, doubling our installed capacity here, is evidence of our long-term commitment to the Nigerian economy,” K.C.Suresh said.
In a notice to the Nigerian Stock Exchange on Tuesday, Dangote Flours Mills informed its shareholders and the investing public of receipt of the offer from Olam International Limited to acquire all of the outstanding and issued shares of Dangote Flour Mills “that are not currently held by Olam or its subsidiary, Crown Flour Mills Limited.”
It said, “The total consideration offered by Olam and being considered by the Board of DFM for the entire 5,000,000,000 issued shares of the company is N130bn. The consideration represents the enterprise value on a debt-free, cash-free basis, payable in cash at the closing of the proposed transaction.
“This consideration will be adjusted for the net working capital and net debt as of March 31, 2019 or any other later date that may be agreed by Olam and the Board of DFM to arrive at the final price payable to equity shareholders. The final price to be paid to the shareholders of the company would be adjusted downwards to exclude shares held by Olam through its subsidiary.”
It, however, maintained that the offer was subjective to the approval of shareholders, regulatory approvals and the sanction of the Federal High Court.
Upon meeting with the terms and conditions, the company would be delisted from the Nigerian Stock Exchange.