Posted by News Express | 23 April 2019 | 814 times
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), as it looks to bolster its position in Nigeria’s wheat market.
Olam’s Nigerian unit, which holds a 0.1 percent stake in Dangote Flour Mills, will buy the rest of the company.
The deal expands Olam’s reach in the pasta market in Nigeria, as it looks to cash in on the growing demand of wheat-based products in the region.
The final deal value will be based on net debt and net working capital of Dangote Flour Mills, the company said in a statement.
Olam will fund the deal, which is on a debt free and a cash free basis, from internal cash resources and existing borrowing.
The deal will be funded by internal cash resources and existing borrowing, Olam added.
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