Dangote Flour Mill’s Plc said it has received a binding offer from Olam International Limited to acquire the company.
The company said in a statement that Olam is offering to acquire all the outstanding and issued shares of DFM that are not currently owned by Olam through its subsidiary, Crown Flour Mills limited.
According to its records, Olam, through its subsidiary, holds 5,113,229 shares in the issued share capital of DFM.
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 N130,000,000,000.00. The Consideration represents the enterprise value on a debt-free, cash-free basis, p.ayabe in ash at the dosing of the proposed Transaction.
The company said the consideration will be adjusted for 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.
The final price to be paid to the shareholders of the Company would be adjusted downwards to exclude shares held by Olam through its subsidiary.
It is inten that the Transaction will be executed through a Scheme of Arrangement, under Section 539 of the Companies & Allied Matters Act Chapter C20 Laws of the Federation of Nigeria 2004 and other applicable laws, and regulations.
The Offer is subject to amongst other things, shareholders’ approval, regulatory approvals, the sanction of the Federal High Court, as well as the absence of a material adverse change in DFM. If the canditons of the Transaction are satisfied and same is sanctioned by the Court, the Company would be deisted from The Nigerian Stock Exchange. The Board will review the Offer in the best interest of the shareholders.
The Board will keep both the capital markets and the public updated on tangible development in this regard, in line with the applicable regulatory requirements.
The company said shareholders and potential investors are advised to exercise caution when dealing in DFM’s shares until a further announcement is made.