Olam International To Acquire Dangote Flour Mills For N120bn.
By UMORU ABDULKADIR
Dangote Flour Mills Plc Tuesday said that Olam International, a Singaporean commodities trading company has agreed to acquire 99% of its entire five billion shares in issue at N24 per share, translating to about N120bn.
Olam International established in 1989 by the Kewalram Chanrai Group with over 150 years of trading history is a leading food and agri-business company in the world, operating from seed to shelf in 70 countries, supplying food and industrial raw materials to over 23,000 customers worldwide. Olam is one of the world’s largest suppliers of cocoa beans and products, coffee, cotton and rice..
Over the past 30 years, Olam has developed into a global food and agri-business headquartered in Singapore with global market leadership positions in many of its businesses.
The acquisition also represents “the enterprise value on a debt-free, cash-free basis, payable in cash at the closing of the proposed transaction,” according to an earlier filing in April 2019.
According to the scheme document, both companies had initially agreed on a binding offer of N26 per share, or N130bn “consideration” to be “adjusted for net working capital and net debt as of 31 March 2019 or any other later date that may be agreed by Olam and the board of DFM to arrive at the final price payable to equity shareholders.”
Similarly, DFM had earlier said that the offer will be reviewed by its board, urging shareholders to exercise caution when dealing in its shares, while awaiting further announcements. In effect, Olam International will now pay N119.87bn for the remaining 99.9% shareholding.
In a filing with the NSE on Tuesday, directors of DFM announced Monday, October 14, 2019, for the court-ordered meeting at which shareholders will consider and possibly approve the scheme of arrangement preparatory to the acquisition of its entire shares by Olam International.
At the meeting, the directors will propose that, subject to the sanction of the court, the beneficial ownership of 100% of the shareholding of the company (not currently held by Crown Flour Mills Limited or any of its subsidiaries or affiliates), be transferred to Crown Flour Mills Limited and any other nominees of Crown Flour Mills Limited.”
For the purpose of the said meeting, the register of members of DFM will be closed between September 30, and October 4, 2019; following which only shareholders whose names appear in the register on Friday, September 27, will be entitled to attend and vote at the meeting.
With this development, Olam international will further consolidate its presence and position in the Nigeria economy where it already has offices and operational units across all geopolitical zones of the Federation,
Olam has a wide and growing network of farmers, suppliers, wholesalers, local buying agents (LBAs), customers and service providers that encompass approximately 500,000 farmers and have created tens of thousands of jobs in indirect employment.
Principal business activities in Nigeria include Animal Feeds and Hatchery with Olam Hatcheries Limited – its most recent major s investment, sourcing and procurement, grading, processing and export of agricultural products such as cocoa, cashew, and sesame, local farming, milling and distribution of rice, wheat milling and Pasta with group company Crown Flour Mills, Biscuits, candy and confectionery with OK Foods Ltd.
Others are Noodles with Olam Sanyo, Dairy beverages with Ranona Nigeria Ltd, and Culinary ingredients with Caraway Foods Ltd
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