Shareholders in a Court Ordered Meeting (COM) in Lagos on Monday October 14, 2019, approved the offer of Crown Flour Mills Limited (CFML) a subsidiary of Olam Group Company to acquire 4,994,886,771 ordinary shares of 50 kobo each held by shareholders of Dangote Flour Mills Plc, for an aggregate consideration of N120 billion.
With this development, once the Securities and Exchange Commission (SEC) and the Federal High Court approves, the acceptance of Dangote Flour Mills shareholders. The possibility of the company shares to be on the Nigerian Stock Exchange (NSE) is very slim, since Olam the parent company of Crown Flour is a privately owned company.
According to the scheme of arrangement for the acquisition, a total value of N24 per every share of Dangote Flour Mills Plc, which is 124 percent premium to the last traded share price of the company on April 18, 2019. And 145 percent premium on the three months weighted average share price of the company as at April 18, 2019.
Crown Flour Mills Limited, primarily engages in the business of wheat milling and pasta manufacturing. It has become over time one of the best and fastest growing companies in this sector in Nigeria. The offer also holds 5,113,229 ordinary shares representing 0.1 percent equity holding in Dangote Flour Mills Plc.
Crown Flour is a subsidiary of Olam, which is a public company listed on the Singapore Exchange in Singapore and a leading global food and agri-business supplying food, ingredients, feed and fibre to over 19,800 customers worldwide. Olam’s value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a sourcing network of an estimated 4.5 million farmers.