Aliko Dangote is reportedly selling his loss-making business unit, Dangote Flour Mills to Olam International for N130 billion ($361.11 million). 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 Ola through its subsidiary, Crown Flour Mills Limited.
“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.”
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