The Nigeria Stock Exchange on Tuesday effected a full suspension on the trading of shares of Dangote Flour Mills as a precursor to its delisting and takeover by Crown Flour Mills.
This will be the second time the company will get sold in the last seven years after it was bought by South Africa-based Tiger Foods in 2012 and returned three years later.
“The suspension is imperative to prevent trading in the shares of the company beyond the effective date of the scheme of arrangement for Crown Flour Mills Limited to acquire the entire issued and fully paid ordinary shares of 50 kobo each in DFM held by scheme shareholders, subsequent to which the company would be delisted from the main board of the NSE,” a statement from the NSE said.
The board of directors of the company had in April received an offer from Olam – the parent company of Crown Flour Mill for the sale of the company.
The firm and the board agreed to pay N130bn for five billion worth of ordinary shares listed by DFM.
The board proposed to make the offer to its shareholders on August 5 through a high court ordered meeting that was scheduled to hold on October 14.
Tiger Foods sold DFM back to Dangote in 2015 for a single dollar after it had acquired the company for $200m.
The company had made losses in the years it was owned by the South African firm.
DFM again announced that it made a loss of N1.16bn just before it agreed to sell the firm to Olam.
Experts say Olam’s acquisition of the staggering firm is an attempt to expand its influence in the country’s confectionery space through Crown, which it purchased in 2010.
SaharaReporters, New York