Singapore’s Olam Group To Acquire Dangote Flour Mills In 130 Bln Naira Deal
By Olumidagreaton April 23, 2019
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Olam International Limited, a Singaporean agro-allied firm has offered to acquire Dangote Flour Mills Plc, majorly owned by Africa’s richest man Aliko Dangote in a bid worth 130 billion naira, the flour mills company said on Tuesday.
Olam was established in 1989, and now listed on the Singapore Exchange and the bids could be a move by the firm to expands its franchise in Nigeria.
Tiger Brands, a South African firm had in 2012 bought a 63 percent stake in Dangote Flour and pasta maker, but few years down the line the Dangote Group bought back the company after the new owners sustained losses repeatedly on its operations.
Olam, through its subsidiary Crown Flour Mills currently, owns over five million shares of Dangote Flour Mills and its bidding to take over the entire company.
In a notice to the Nigerian Stock Exchange (NSE), Dangote Flour said the total consideration offered by Olam is to acquire the five billion shares of the flour mill which is worth about 130 billion naira.
The deal, according to Dangote Flour would be on the basis of debt free, cash free at the end of the transaction, which means working capital and debt value would be net out at the end of the transaction.
The transaction will be executed through a Scheme of Arrangement under the company and allied Act and other relevant laws.
Also, the deal will be subjected to the approval of the shareholders, regulatory authorities and the court, the flour mill majorly s.owned by Africa’s richest man, Aliko Dangote.
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