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Africa’s richest man Aliko Dangote is reportedly selling off his loss-making business unit, Dangote Flour Mills to Olam International 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 which was posted on the Nigerian Stock Exchange (NSE) on Tuesday.
According to the director at Dangote Flours, Thabo Mabe, Olam International has indicated their interest to buy all the outstanding and issued shares of the flour mills company which are not currently owned by Ola via 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.”
