Olam reduces its offer for Dangote Flour from N130bn to N120bn

10 September 20192 min reading

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. DFM had in April notified the Nigerian Stock Exchange (NSE), said Olam had offered to acquire its five billion shares was N130 billion. 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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