Singapore-based agricultural company, Olam International Limited has placed a N130bn bid to take over the operations and facilities of Dangote Flour Mill Plc.
Dangote Flour Mills on Tuesday notified the Nigerian Stock Exchange (NSE) on Tuesday that the company had received a “binding offer from Olam International Limited to acquire all of the outstanding and issued shares of Dangote Flour Mills “that are not currently held by Olam or its subsidiary, Crown Flour Mills Limited.”
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It said, “The total consideration offered by Olam and being considered by the Board of DFM for the entire 5,000,000,000 issued shares of the company is N130bn. The consideration represents the enterprise value on a debt-free, cash-free basis, payable in cash at the closing of the proposed transaction.
Herald Nigeria learnt that the deal is still subject to shareholders’ approval, regulatory approvals, the sanction of the Federal High Court and negative slope of the company’s shares.
“If the conditions of the transaction are satisfied and the same is sanctioned by the court, the company would be delisted from the Nigerian Stock Exchange,” the notice added.
DFM’s shares jumped 9.8 per cent to N11.75 after the offer was announced.