Olam International bids $489.99m for Nigeria-based Dangote Flour
The acquisition could pull Dangote Flour out of the Nigerian Stock Exchange.
Olam International has submitted a binding offer to acquire 100% of Nigerian flour and pasta manufacturer Dangote Flour Mills Plc (DFM) for an enterprise value of $489.99m (NGN130b or US$361m).
The proposed transaction would include DFM’s five strategically located facilities engaged in flour and pasta manufacturing, as well as its logistics capabilities including access to the ports of Apapa and Calabar.
“The acquisition of DFM supports the strategy of the Grain and Animal Feed business to expand our wheat milling capacity in high-growth markets, such as Nigeria,” said K.C. Suresh, managing director and CEO of Olam Grains and Animal Feed.
The proposed transaction would mean Olam acquiring all the outstanding and issued shares of DFM that it does not currently own through a Scheme of Arrangement. As per the offer terms, the final equity price per share payable to shareholders will be arrived at after adjusting for relevant net debt and net working capital of DFM.
Upon satisfactory fulfilment of the conditions, DFM would be delisted from the Nigerian Stock Exchange (NSE).