Olam International tables N130bn bid to acquire Dangote Flour Mills

Aliko Dangote
Aliko Dangote

Agro-allied company based in Singapore, Olam International Limited, has tabled a N130 billion bid to acquire Dangote Flour Mill (DFM) Plc.

In a notice to the Nigerian Stock Exchange (NSE) on Tuesday, Dangote Flour Mills said the total consideration offered by Olam to acquire its five billion shares was N130 billion.

Crown Flour Mills, a subsidiary of Olam, currently owns over five million shares of Dangote Flour Mills but now wants total control.

The notice signed by a director, Thabo Mabe, said the transaction would be on the basis of debt free, cash free, payable in cash at the closing of the proposed transaction.

“If the conditions of the transactions are satisfied and sanctioned by the court, the company would be delisted from NSE,” Dangote Flour Mills said.

The company said the offer would be subject to shareholders’ approval, regulatory approvals and sanctions of the Federal High Court.

“The board will keep both the capital markets and the public updated on tangible development in this regard, in line with the applicable regulatory requirements,” it said.

South African firm Tiger Brands had in 2012 bought a 63 per cent stake in Dangote Flour but was bought back by Dangote Group after Tiger Brands made repeated losses in its operations.