November 2, 2019

Olam completes acquisition of Dangote Flour Mills

Dangote, Olam

Dangote Flour

Dangote Flour

By Nkiruka Nnorom

Dangote Flour Mills (DFM) Plc has announced the completion of the takeover of the flour milling company by Olam, the parent company of Crown Flour Mill, following delivery of the court sanction to the Corporate Affairs Commission (CAC).

The company said in a regulatory filing that the takeover has become effective following the communication of the court’s decision to CAC, adding that the conclusion of the acquisition means that the shares of Dangote Flour Mills will now be delisted from the Nigerian Stock Exchange (NSE).

Also read: Nigerian Stock Exchange capitalisation bows to sell pressure, down by N69bn

Consequently, the shareholders of the company have been offered N24 per share exit price.

The share price of the company was on Tuesday, October 29 placed on full suspension ahead of the sanction by the Federal High Court and subsequent delisting from the Nigerian Stock Exchange.

The company added that only shareholders whose names appeared on the register of members as of October 31, 2019, would benefit from the scheme arrangement.

“Naira Escrow Consideration has been funded and the DFM and the registrar have been notified by the Escrow Bank. The scheme consideration will become due and payable by the registrar to the shareholders within four days of the transfer date,” the company said.

The board of directors of the DFM had in April received an offer from Olam to pay N120 billion for 4.99 issued and fully paid ordinary shares of the company.

The board proposed to make the offer to its shareholders on August 5 through a high court ordered meeting that was scheduled to hold on October 14.