The Nigerian Stock Exchange (NSE) has been notified by the board of Dangote Flour Mills about the receipt of a binding offer from Olam International Limited to acquire all of Dangote Flour’s outstanding shares that are not currently held by Olam or its subsidiary.
Olam International offered the sum of 130 billion naira ($361 million) to buy out the entire issued shares of Dangote Flour Mills. The offer is currently being considered by the flour manufacturer’s board of directors.
A statement highlighting details of the deal said “the total consideration offered by Olam and being considered by the board of Dangote Flour Mills for the entire 5,000,000,000 issued shares of the company is 130 billion naira only. The consideration represents the enterprise value on a debt-free, cash-free basis, payable in cash at the closing of the proposed transaction”.
The statement also said “this consideration will be adjusted for the net working capital and net debt as of 31 March 2019 or any other late date that may be agreed by Olam and the board of Dangote Flour Mills to arrive at the final price payable to equity shareholders. The final price to be paid to the shareholders of the company will be adjusted downwards to exclude shares held by Olam through its subsidiary”.
Before the deal eventually takes effect, it will also be subject to shareholders’ approval, regulatory approval, as well as a court sanction; specifically the Federal High Court.
After the conditions of the transaction are met and fully approved by all concerned stakeholders, Dangote Flour Mills Plc will delist from the Nigerian Stock Exchange.
The Board of Dangote Flour Mills Plc reiterated that it will duly review Olam‘s offer in the best interest of the shareholders. The NSE and the investing public will be updated with the latest details as they unfold.