Singapore’s agribusiness group, Olam International, on Tuesday (April 23rd) announced plans to acquire Nigerian businessman Aliko Dangote’s Nigerian businessman Dangote Flour Mills (DFM) for 130 billion naira ( $ 361.6 million).
If the transaction is accepted, Olam will become the owner of DFM’s five flour and pasta facilities and logistical capabilities, including access to Apapa and Calabar ports.
Olam currently operates wheat milling and flour and pasta manufacturing in Nigeria and sub-Saharan Africa.
« We are confident about the growth prospects in this country and this acquisition, which doubles our installed capacity here, demonstrates our long-term commitment to the Nigerian economy, » said K.C.
Suresh, Managing Director and CEO of Olam Grains and Animal Feed. Note that the transaction is subject to the approval of DFM shareholders, regulatory approvals, sanction of the Federal High Court of Nigeria and the absence of significant adverse change in DFM, among others.
It should be noted that if the acquisition materializes, DFM will be delisted from the Nigerian Stock Exchange.