Olam modifies Dangote Flour Mill acquisition offer

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Workers operate a machine at the Dangote flour mill in Apapa district in Nigeria's commercial capital of Lagos November 13, 2010. REUTERS/Akintunde Akinleye (NIGERIA - Tags: EMPLOYMENT BUSINESS) - GM1E6BE0DY301

Olam International, a leading food and agri-business company, that previously showed interest in the acquisition of Dangote Flour Mill (DFM) has made a final offer of N120 billion.

The transaction if successful will make DFM a completely owned subsidiary of Olam International.

Dangote Flour Mill, in a disclosure on the Nigerian stock market, by its secretary, Aisha Isa, announced the revised bidding offer.

It said Olam, through its subsidiary Crown Flour Mills Ltd, has now submitted a revised offer with final consideration of N120 billion, amounting to N24 only per ordinary share following the adjustment.

“The shareholders of DFM (excluding Crown Flour) will be paid the Final Consideration in accordance with the terms of the Scheme Document to be considered and approved by the shareholders at a court-ordered meeting to be convened for that purpose.

“The Board has carefully considered the Addendum and the Initial Offer (“Revised Offer’) and will, subject to obtaining regulatory approvals, recommend the Revised Offer to the shareholders of the Company at the court-ordered meeting, for their consideration and approval,” it said.
It also said the terms and conditions of the Initial Offer as earlier notified are still applicable.

Olam, one of the world’s largest suppliers of cocoa beans and products, coffee, cotton, and rice, was founded in Nigeria as an exporter of cashew nuts about 30 years ago. It has grown over time, operating in more than 60 countries with a market value of $4.5 billion.

This deal is expected to enable Olam to build on a country workforce of almost 3,000 while tapping local demand for bakery, snacks and pasta products.

The acquisition is also part of a strategic shift toward areas that offer the most demand, including flour milling in West Africa. Nuts, cotton and tropical spices have also been earmarked for expansion, Olam said in January, while the company will exit commodities such as sugar and rubber.

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