A Singaporean agro-allied company, Olam International Limited on Tuesday offered to acquire Dangote Flour Mills Plc (DFM) for ₦130 billion.

In a notice to the Nigerian Stock Exchange (NSE), Dangote Flour Mills said that the ₦130 billion was the total consideration offered by Olam to acquire its five billion shares.

The notice which was signed by Mr. Thabo Mabe, a director in the company said the transaction would be on the basis of debt free, cash free and payable in cash at the closing of the proposed transaction.

“If the conditions of the transactions are satisfied and sanctioned by the court, the company would be delisted from NSE,” the notice added.

Olam, through its subsidiary, Crown Flour Mills currently owns over five million shares of DFM and is bidding to acquire all the outstanding and issued shares of DFM which it currently does not own.

The company however said the offer was subject to, amongst other things, shareholders’ approval, regulatory approvals and the sanctions of the Federal High Court.

This latest bid by Olam, which was established in 1989 and now listed on the Singapore Exchange could be a move by the firm to expand its business franchise in Nigeria.