By Dipo Olowookere
The board of directors of Dangote Flour Mills Plc has indicated their intention to secure the approval of shareholders to effect the sale of the company to a foreign investor.
Few days ago, the flour milling firm announced that Olam International Limited was offering to buy the company for the sum of N130 billion.
Olam, according to the board of Dangote Flour, wants to acquire about 5 billion units of the company for N130 billion, representing about N26 per share, over 100 percent higher than the market value of the company’s stock on the Nigerian Stock Exchange (NSE).
In a notice to the NSE on Friday (today), the board said it would want to get the approval of shareholders to go ahead with this deal. However, this authorisation would be sought for at a meeting order by the court in Nigeria.
In the notice, the board said it has “considered and agreed to recommend to its shareholders, Olam International Limited’s offer for the acquisition of 99.90 percent of the issued share capital of the company” subject to obtaining regulatory approvals.
Olam had submitted an offer to acquire all the outstanding and issued shares of Dangote Flour not currently owned through its subsidiary, Crown Flour Mills.
Dangote Flour board said, “The principal terms of the offer will be set out in the scheme document that will be circulated to the shareholders at the relevant time.
“Further details will be communicated to the market upon obtaining relevant approvals from shareholders and regulators.
“Shareholders and potential investors are advised to exercise caution when dealing in DFM’s shares until a further announcement is made,” the notice said.
Olam is a leading food and agri-business supplying food, ingredients, feed and fibre to over 19,800 customers worldwide. Its value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a sourcing network of an estimated 4.8 million farmers.
Through its purpose to ‘Re-imagine Global Agriculture and Food Systems’, Olam aims to address the many challenges involved in meeting the needs of a growing global population, while achieving positive impact for farming communities, the planet and all its stakeholders.
Headquartered and listed in Singapore, Olam currently ranks among the top 30 largest primary listed companies in terms of market capitalisation on SGX-ST.
Adedapo Adesanya