Olam makes $362m offer for Dangote Flour Mills, a former Tiger Brands unit
Aliko Dangote bought the business back from Tiger Brands for a nominal $1 in late 2015
Olam International made a cash bid to buy Dangote Flour Mills (DFM) of Nigeria as the Singapore-based agriculture trader looks to expand in West Africa as part of a rejig of its portfolio. Olam will offer 130-billion naira ($362m) for Lagos-based DFM, which is part of the business empire of Aliko Dangote, Africa’s richest man. The price was calculated on a debt-free basis, and will be adjusted to account for net borrowings, the Nigerian company said in a statement on Tuesday. The move sees Olam going back to its roots. The company was founded in Nigeria as an exporter of cashew nuts 30 years ago, and has since grown into a global behemoth with operations in more than 60 countries and a market value of $4.5bn. The deal will enable it to build on a country workforce of almost 3,000, while tapping local demand for snacks and bakery and pasta products. “We are confident about the growth prospects in this country, and this acquisition, doubling our installed capacity here, is evidence of...
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