Aliko Dangote has reportedly put up his loss-making business unit, Dangote Flour Mills for sale and and Olam International has already made an offer of N130 billion ($361.11 million) to buy it.
The sale of Dangote Flour Mills Plc for N130 billion ($361.11 million), was announced in a corporate disclosure posted on the Nigerian Stock Exchange (NSE) on Tuesday.
According to Thabo Mabe, director at Dangote Flours, Olam International has indicated interest to acquire all the outstanding and issued shares of the flour mills company that are not currently owned by Olam through its subsidiary, Crown Flour Mills Limited.
It was further learnt that Olam International through its subsidiary, holds 5,113, 229 shares in the issued share capital of Dangote Flour Mills. Recall that two years ago, the Group also sold a unit of the business, Dangote Noodle plant, to rival pasta maker De-United Foods Industries for N3.75 billion ($12.26 million).
“The total consideration offered by Olam and being considered by the Board of Dangote Flour Mills for the entire 5 billion issued shares of the company is N130 billion.
“The consideration represents the enterprise value on a debt-free, cash-free basis, payable in cash at the closing of the proposed transaction. This consideration will be adjusted for net working capital and net debt as of 31 March 2019 or any other later date that may be agreed by Olam and the Board of Dangote Flour Mills to arrive at the final price payable to equity shareholders.”