Ololade Adeyanju/
Nigerian flour and pasta manufacturer, Dangote Flour Mills, has been delisted from the Nigerian Stock Exchange (NSE) following its takeover by Agri and food giant, Olam International.
NewsmakersNG learnt that Olam completed the acquisition of the 11-year-old Dangote Flour Mills for N120billion ($450million).
The move came after Olam had obtained approval from Dangote shareholders for the scheme arrangement that saw Olam subsidiary, Crown Flour Mills acquiring all of Dangote’s shares.
Trading in Dangote shares was first placed on full suspension before the company was consequently delisted from the Nigerian Stock Exchange’s main Board.
The acquisition amount was changed from N130billion to N120billion in an addendum announced on August 5, following adjustments for Dangote’s net working capital and net debt as of March 31, along with existing shares held by Crown Flour Mills.
Starting as a division of Dangote Industries Limited in 1999, DFM was incorporated and it commenced operations as a public limited liability company on January 1, 2006. It was listed on the NSE in 2008.
Alhaji Aliko Dangote’s Dangote Industries Limited (DIL) owned the majority equity stake.
This is the second time Dangote will be selling DFM.
Dangote, in 2012, had sold its majority equity stake to Tiger Brands Limited, South Africa’s largest food company. However, Tiger Brands was unable to unlock the assets and faced with the dire situation of outright liquidation and bankruptcy, Tiger Brands Limited on December 11, 2015, reached an agreement with DIL to resell the troubled flour-milling company to DIL.
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