The Nigerian Stock Exchange has delisted Dangote Flour Mills (DFM) Plc from its official list, ending the 11 years history of the company as a quoted public limited liability company.
The delisting marked the formal conclusion of the acquisition of Dangote Flour Mills by Crown Flour Mills, a subsidiary of Olam International Limited. The reversion of Dangote Flour Mills to a private limited liability company and delisting from the NSE were part of the acquisition deal that saw conversion of Dangote Flour Mills to a wholly owned subsidiary of Crown Flour Mills.
From a modest start as a division of Dangote Industries Limited in 1999, Dangote Flour Mills was incorporated and commenced operations as a public limited liability company on January 1, 2006. It was listed on the NSE in 2008. Alhaji Aliko Dangote’s Dangote Industries Limited (DIL) owned the majority equity stake.
Shareholders of Dangote Flour Mills had approved a N120 billion takeover of the flour-milling company by Olam International Limited. Olam International offered N120 billion for the acquisition of 99.9 per cent equity stake in Dangote Flour Mills.
At their court ordered meeting in October, 2019, shareholders of Dangote Flour had approved the scheme of arrangement transferring DFM’s shares to Olam at a price of N24 per share. They also approved a resolution affirming Olam as the legal beneficial 100 per cent owner of DFM after the transfer of the shares.
This is the second time Dangote will be selling Dangote Flour Mills . Dangote, in 2012, had sold its majority equity stake to Tiger Brands Limited, South Africa’s largest food company. However, Tiger Brands was unable to unlock the assets and faced with the dire situation of outright liquidation and bankruptcy, Tiger Brands Limited on December 11, 2015 reached agreement with DIL to resell the troubled flour-milling company to DIL.