The shareholders of Dangote Flour Mills Plc have unanimously endorsed the acquisition of the company by Crown Flour Mills Limited, the Nigerian subsidiary of Olam International Limited.
The shareholders gave their approval after Olam made a payment of N120 billion. The acquisition was carried out through a Scheme of Arrangement as most of the shareholders who spoke at the meeting lauded the company’s management for the noble decision.
Speaking on the acquisition, the Managing Director (MD), Crown Flour Mills Limited, Anurag Shukia, made known that there were plans aimed at maintaining and expanding Dangote Flour Mills while also providing and enhancing manufacturing capacity to deliver improved products to customers across the country.
Prior to now, Olam made an offer for the acquisition of 100% equity in Dangote Flour Mills for consideration of N24.00 per share.
Nairametrics had reported of an earlier offer by Olam International Limited to buy out the entire issued shares of Dangote Flour Mills Plc.
However, the fact that Crown Flour Mills held a total of 5,113,229 units of shares in Dangote Flour Mills, and intended to buy out the entire issued shares of Dangote Flour Mills led to a court-ordered meeting.
As a result of the court-ordered meeting, Dangote Flour Mills informed its shareholders and investing public of the postponement of its Annual General Meeting (AGM) for the year ended 2018.
The shareholders of Dangote Flour Mills are said to benefit an enhancement in the value of their investment in the company and exit at attractive pricing. Also, the scheme, through which the acquisition was carried out, will create improved revenue generation capacity, reduced operational costs and enhanced profit between Dangote Flour mills and Crown Flour.