Olam International Accquires Dangote Flour Mills For N130bn
By Iwedi Ojinmah 4 months ago
Singapore-based commodity trader Olam International on Tuesday said it will buy Nigeria’s Dangote Flour Mills for an enterprise value of 130 billion naira ($424.9 million).
The deal will be funded by internal cash resources and exiting borrowing, Olam added.
Olam International is a leading food and agri-business company in the world, operating from seed to shelf in 70 countries, supplying food and industrial raw materials to over 23,000 customers worldwide. Olam is one of the world’s largest suppliers of cocoa beans and products, coffee, cotton and rice.
Established in 1989, Olam has evolved from a single-product, single-country geography, to a multi-product, multi-national, agri-business today, with 70,000 employees, contract, seasonal and temporary workers from 70 different nationalitiesRelated: NNPC Announces New DSDP Bid Winners .
In 1989, the Kewalram Chanrai Group established Olam Nigeria Plc to set up a non-oil based export operation out of Nigeria to secure hard currency earnings to meet the foreign exchange requirements of the other Group Companies operating in Nigeria. The success of this operation resulted in Olam establishing an independent export operation and sourcing and exporting other agricultural products. The Group's agri-business was headquartered in London and operated under the name of Chanrai International Limited. The business began with the export of cashews from Nigeria and then expanded into exports of cotton, cocoa and sheanuts from Nigeria.
Dangote Flour Mills Plc (DFM) commenced operations in 1999, as a division of Dangote Industries Limited (DIL) – one of Nigeria’s largest and fastest growing conglomerates.
Following the strategic decision of DIL to unbundle its various operations, Dangote Flour Mills was incorporated in 2006. The restructuring was completed in January, 2006 when the Federal High Court sanctioned a Scheme of Arrangement wherein all the assets, liabilities and undertakings of the erstwhile flour division of DIL was transferred to Dangote Flour Mills.