Olam International through its subsidiary, Crown Flour, has submitted a revised offer of N120 billion to acquire the issued shares of Dangote Flourmill Plc (DFM). Last April, Olam made a N130 billion bid.
The directors of DFM, according to a statement by the company secretary, Aisha Ladi Isa, received the adjusted bid on August 1. With the final consideration of N120 billion, amounting to N24.00 per ordinary share, Olam is executing the deal via the subsidiary.
The statement said Olam had also confirmed its irrevocable financial support to Crown Flour to fulfill its obligations under the transactions. Furthermore, the company explained that the shareholders of DFM would be paid their entitlements in accordance with the terms of the document to be considered at a court-ordered meeting.
“The board has carefully considered the addendum and the initial offer and would be subject to regulatory approvals and recommendations of the revised offer to the shareholders of the company at the court-ordered meeting for their consideration and approval,’’ it stated.
When negotiation began in April, Olam International submitted a binding offer to acquire 100 percent ownership of DFM, a leading flour and pasta manufacturer in Nigeria, at N130 billion. The proposed transaction included DFM’s five strategically located facilities engaged in flour and pasta as well as its logistics, including access to Apapa and Calabar ports.
The acquisition is part of Olam’s strategy to strengthen its portfolio by investing in proven businesses where it has consistently performed and gained market share.
The Managing Director and CEO of Olam Grains and Animal Feed, K.C. Suresh, said: “The acquisition of DFM supports the strategy of the grain and animal feed business, one of Olam’s prioritised platforms for growth and expansion of our wheat milling capacity in high-growth markets such as Nigeria.”
