Olam Stakes N120b to Take Over Dangote Flour Mills


Olam International Limited has submitted a final offer of N120 billion to acquire all the outstanding shares of Dangote Flour Mills that are not currently held by its subsidiary, Crown Flour Mills Limited.

On April 23, Olam made a bidding offer to Dangote Flour Mills to acquire all outstanding and issued shares not currently owned by it through its subsidiary, Crown Flour Mills Limited.

Dangote Flour Mills said a sum of N130bn was offered by Olam and it has been considered by its board for the acquisition of its entire five billion issued shares.  According to DFM, the N130 billion offer made by Olam represented the enterprise value on a debt-free, cash-free basis and payable in cash at the closing of the proposed transaction.

Meanwhile, in a statement on Monday, Dangote Flour Mills said Olam and Crown Flour for the second time issued an addendum on August 1, reducing the binding offer from N130bn to a final consideration of N120bn, which amount to N24 per ordinary share, following the adjustments.

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The statement read in part, “The shareholders of DFM (excluding Crown Flour) will be paid the final consideration in accordance with the terms of the scheme document to be considered and approved by the shareholders at a court ordered meeting to be convened for that purpose.

“The board of directors has carefully considered the addendum and the initial offer (revised offer) and will, subject to obtaining regulatory approvals, recommend the revised offer to the shareholders of the company at the court-ordered meeting for their consideration and approval.”

DFM further said aside from the new announcement in the statement, all the terms and conditions in the initial offer remained applicable.


The notice stated, “It is intended that the transaction will be executed through a scheme of arrangement, under Section 539 of the Companies and Allied Matters Chapter C20 Laws of the Federation of Nigeria 2004 and other applicable laws, rules and regulations.

“If the conditions of the transaction are satisfied and same is sanctioned by the court, the company will be delisted from the Nigerian Stock Exchange.”

Dangote Flour Mills said its board would review the offer in the best interest of its shareholders, adding that the board would keep both the capital markets and the public updated on tangible development, in line with applicable regulatory requirement.

“Shareholders and potential investors are advised to exercise caution when dealing in Dangote Flour Mills’ shares until a further announcement is made,” the statement further added.

Samson Oyedeyi

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