Crown Flour Mills Limited has submitted a revised offer to acquire all the outstanding shares of Dangote Flour Mills that are not currently held by its parent company, Olam International Limited.
This fresh offer, which was submitted for final consideration is N120 billion, amounting to N24 only per ordinary share following the adjustments made.
Prior to this development, on Thursday, August 1, 2019, Dangote Flours received an addendum from Olam to the offer dated Thursday, April 23, 2019, to acquire its outstanding and issued shares that are not currently owned through Crown Flour.
The previous offer: As earlier reported, Olam offered N130 billion for the 5,000,000,000 issued shares of Dangote Flour Mills. Note that the entire issued shares are the total issued shares of Dangote in the company.
Olam’s shares in the company: Already, Crown Flour Mills Limited, which is a subsidiary of Olam International Plc, currently holds a total of 5,113,229 units of shares in Dangote Flour Mills Plc.
How the transaction will be executed: Dangote Flour Mills Plc disclosed that the transaction would 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”. Other applicable laws, rules/regulations would also be considered.
Is the offer subject to any approval? Before the deal eventually takes effect, it will also be subject to shareholders’ approval, regulatory approval, as well as a sanction from a Federal High Court.
Expectation: Note that after the conditions of the transaction are met and fully approved by all concerned stakeholders, Dangote Flour Mills Plc will delist from the Nigerian Stock Exchange (NSE).
In the meantime, the Board of the company reiterated that it would duly review Olam‘s offer in the best interest of the shareholders.
Dangote Flour Mills Plc traded N20.35 in the last trading session of the NSE.