News

Dangote Is Selling His ‘Dangote Flour Mills’ For N130bn

Aliko Dangote is reportedly selling his loss-making business unit,
Dangote Flour Mills to Olam Int’l 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 Olam 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.”

Tags

Tony Orji

Dr. Tony Orji is the founder and owner of Success Tonics Blog. He is a Senior Lecturer at the Department of Economics, University of Nigeria, Nsukka.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button