Olam indicates interest to acquire Dangote Flour Mills

Olam has indicated interest with an offer of N130 billion to acquire all shares of Dangote Flour Mills that it doesn’t already own through its subsidiary, Crown Flour Mills, TOPNAIJA.NG reports.

In a notice sent to the Nigerian Stock Exchange on Tuesday, the board of Dangote Flour Mills said the money being offered will cover all its five billion issued shares.

“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 31 March 2019, or any other later date that may be agreed by 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.”

According to the notice, the transaction would be carried out through a scheme of agreement, under section 539 of the Companies & Allied Matters Act Chapter C20 Laws of the Federation of Nigeria 2004.

“The offer is subject to amongst other things, shareholders’ approval, regulatory approval, the sanction of the Federal High Court, as well as the absence of a material adverse change in DFM.”

If the conditions of the transaction are satisfactory, the company would be delisted from the Nigerian Stock Exchange.

The board said the offer would be reviewed in the best interest of the shareholders.