Post Views: 119 Shareholders of Dangote Flour Mills Plc, on Monday in Lagos, unanimously approved the acquisition of the company by Crown Flour Mills ...
Shareholders of Dangote Flour Mills Plc, on Monday in Lagos, unanimously approved the acquisition of the company by Crown Flour Mills Limited, the Nigerian subsidiary of global food and agri-business conglomerate, Olam International Limited after paying N120bn to the shareholders (READ MORE).
Olam International has made an offer for the acquisition of 100% equity in Dangote Flour Mills Plc for consideration of N24.00 per share through a Scheme of Arrangement (READ MORE).
Following the acquisition, the entire 4,994,886,771 ordinary shares of DFM held by the scheme shareholders of the company will be transferred to Crown Flour, in exchange for N24 per share that will be given to the shareholders for each unit held. This represents a 124% premium on the share price of DFM as at the close of April 18, 2019, being the last business day prior to the date the proposal was received and announced on the Nigerian Stock Exchange (NSE); and a 145% premium on the three-month weighted average share price of the company as at 18 April, 2019.
Most of the shareholders who spoke at the meeting lauded the company’s management for acting in their best interest.
Nona Awoh, a financial analyst and shareholders of the company, while appreciating the Management on the offer of N24 per share, reminded other shareholders that the last time the share price of the company increased significantly to N20 per share was in 2010.
Managing Director of Crown Flour Mills Limited, Anurag Shukia said his company intends to maintain and expand DFM’s business as well as provide enhanced manufacturing capacity and create synergies to deliver improved products to customers across the country.
Photo caption: Chairman of Dangote Flour Mills Plc, Asue Ighodalo making a point at the company’s court-ordered meeting in Lagos on Monday, October 14, 2019. He is flanked by the company’s Executive Director, Commercial, Halima Aliko Dangote (left); Company Secretary/Legal Adviser, Aisha Isa (second left); the Chief Executive Officer, Thabo Mabe (second right); and Group Managing Director, Dangote Industries Limited, Olakunle Alake (right).