SINGAPORE — Following the approval from Dangote Flour Mills (DFM) shareholders, Olam International Ltd. completed its acquisition of DFM for N120 billion ($331 million) on Nov. 1.
In late April 2019, Olam submitted a binding offer to acquire 100% equity of DFM. Under terms of the transaction, Olam would acquire all the outstanding and issued shares of DFM that it does not currently own through a Scheme of Arrangement.
The trading of shares of DFM has been placed on full suspension following the Effective Date of the Scheme Arrangement. DFM will consequently be delisted from the Main Board of the Nigeria Stock Exchange, Olam said following the completed acquisition.
When the acquisition was first announced Olam said it was part of its strategy to strengthen its portfolio and came after the company unveiled its six-year strategic plan to invest $3.5 billion in several key business areas — including grains and animal feed — while divesting four businesses, part of the company’s 2019-24 plan.
DFM is a Nigerian-based company engaged in wheat milling, flour and pasta manufacturing and distribution. It started operation in 1999 as a division of Dangote Industries Ltd. It has mills across Nigeria, including in Apapa, Ikorodu, Ilorin, Kano and Calabar.
Olam currently operates wheat milling, flour and pasta manufacturing in Nigeria and Sub-Sharan Africa.