Dangote Flour Mill (DFM) Plc might have agreed in principle to grant Olam International Limited, a Singaporean agro-allied company, request to acquire the company in a bid worth N130 billion.
Dangote Flour Mills, in a notice to the Nigerian Stock Exchange (NSE), said the total consideration offered by Olam to acquire its five billion shares was N130 billion.
Olam, through its subsidiary Crown Flour Mills currently, owns over five million shares of Dangote Flour Mills and is bidding to take over the entire company.
It stated that Olam was bidding to acquire all the outstanding and issued shares of DFM that were not currently owned by Olam through its subsidiary, Crown Flour Mills Limited.
The notice signed by Mr. Thabo Mabe, a director, said that the transaction would be on the basis of debt free, cash free, payable in cash at the closing of the proposed transaction.
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.
“If the conditions of the transactions are satisfied and sanctioned by the court, the company would be delisted from NSE,” it said.
The company said that the offer was subject to, amongst other things, shareholders’ approval, regulatory approvals, the sanctions of the Federal High Court.