Olam has reduced its offer for Dangote Flour Mills by N10 billion. In an earlier announcement made in April, the company had said it would pay N130 billion for all five billion issued shares of Dangote Flour Mills.
The offer was made through its subsidiary, Crown Flour Mills. It, however, did not state the reason for the revision.“Following the Adjustments, the Company has submitted an addendum to the Initial Offer with revised Consideration of N120,000,000,000.00 (One Hundred and Twenty Billion Naira Only) to the Board of Directors of DFM (the “Addendum”),” it said.
“The Board of Directors of DFM has announced today that it has considered the Addendum and the Initial Offer (the “Revised Offer”) and will, subject to obtaining regulatory approvals, recommend the Revised Offer to its shareholders for consideration and approval.”
On Monday, Dangote Flour Mills sent a notice to the Nigerian Stock Exchange notifying shareholders that it has received the revised offer. “The Board has carefully considered the Addendum and the Initial Offer (Revised Offer) and will, subject to obtaining regulatory approval, recommend the Revised Offer to the shareholders of the Company at the court-ordered meeting, for their consideration and approval.”
Dangote Flour Mills shares ended on the top gainers’ list of the NSE on Monday after news of the offer was shared.