The Board of Dangote Flour Mills Plc has notified the Nigerian Stock Exchange, its shareholders, and the investing public about the receipt of a binding offer from Olam International Limited to acquire all of Dangote Flour’s outstanding shares that are not currently held by Olam or its subsidiary.
According to the public disclosure which was obtained by Nairametrics, Olam International Limited offered a total of N130, 000,000,000.00 to buy out the entire issued shares of Dangote Flour Mills Plc. The offer is currently being considered by the flour manufacturer’s board of directors.
The statement gave further details about the deal, thus:
“The total consideration (the “Consideration”) offered by Olam and being considered by the Board of DFM for the entire 5,000,000,000 issued shares of the company is N130, 000,000,000.00 (One Hundred and Thirty Billion Naira Only). The Consideration represents the enterprise value on a debt-free, cash-free basis, payable in cash at the closing of the proposed Transaction. This Consideration will be adjusted for the net working capital and net debt as of 31 March 2019 or any other later date that may be agreed by Olam and the Board of DFM to arrive at the final price payable to equity shareholders. The final price to be paid to the shareholders of the Company would be adjusted downwards to exclude shares held by Olam through its subsidiary.”
Olam’s subsidiary already owns some shares in the company
Crown Flour Mills Limited, which is a subsidiary of Olam International Plc, currently holds a total of 5, 113, 229 units of shares in Dangote Flour Mills Plc.
More Details about the Deal…
How the transaction will be executed: The statement from Dangote Flour Mills Plc further disclosed that the “transaction will be executed through a Scheme of Arrangement, under Section 539 of the Companies & Allied Matters Act Chapter C20 Laws of the Federation of Nigeria 2004”. Other applicable laws, rules/regulations will also be considered.
The offer will also be subject to approvals
Before the deal eventually takes effect, it will also be subject to shareholders’ approval, regulatory approval, as well as a court sanction; specifically the Federal High Court.
Also note that after the conditions of the transaction are met and fully approved by all concerned stakeholders, Dangote Flour Mills Plc will delist from the Nigerian Stock Exchange.
In the meantime, the Board of Dangote Flour Mills Plc reiterated that it will duly review Olam‘s offer in the best interest of the shareholders. The NSE and the investing public will be updated with the latest details as they unfold.
Current shareholders of Dangote Flour Mills Plc and the public have been advised to be cautious in the dealings with the company’s shares, going forward.
Dangote Flour closed at N11.75 in today’s trading session, up 9.81%.
COVID-19: FG to inaugurate 18-man vaccine task team
FG has announced plans to set up an 18-man Covid-19 Vaccine Task Team with the responsibility to acquire and deploy vaccines in the country.
The Federal Government has announced through the Ministry of Health, that it will inaugurate an 18-man Covid-19 Vaccine Task Team, in a bid to ensure vaccine security In Nigeria.
This was disclosed on Monday by the Health Minister, Dr. Osagie Ehanire, during the daily briefing of the Presidential Task Force (PTF) on COVID-19 in Abuja.
He revealed that the need for a task force comes as vaccines would be made available globally. The responsibilities of the task force include the acquisition and deployment of vaccines in the country.
“Now that vaccines are known to be close at hand, the Federal Ministry of Health is taking measures toward vaccine security, for which an 18-man National COVID-19 Vaccine Task Team with seven Terms of Reference (ToR) will be inaugurated.
“The ToR will include generating strategies for acquisition, deployment, and options for licensed production by Biovaccine Nigeria Ltd.
“Our options with WHO/GAVI led Covax facility remains our first line of engagement,” he added.
What you should know
After news of the Pfizer vaccine went viral, Nairametrics reported that the Health Minister, Dr. Osagie Ehanire, said Nigerians will benefit early from COVID-19 vaccines when the product is made available for commercial use. He revealed that any vaccine that is deemed fit for commercial use in treating coronavirus will be made available early to Nigerians.
Nairametrics also reported plans by the Nigerian government to set up a vaccine production company in Nigeria to boost local COVID-19 vaccine production.
The G-20 nations announced a pledge to pay for vaccine distribution to developing nations that can’t afford it. The leaders also announced a debt extension programme to developing nations during the weekend’s G-20 summit.
Gov. Makinde presents N266 billion budget to Oyo State House of Assembly
Governor Seyi Makinde has presented a ₦266.64billion budget proposal to the Oyo State House of Assembly.
The Oyo State Governor, Seyi Makinde, presented the Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly. The total budgeted sum is ₦266.64billion, with education expected to receive N56.35billion – 21% of the budget and a rise from N12 billion budgeted in 2019.
This was disclosed by Governor Makinde in a social media post on Monday.
It was my honour to present the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly, today. This Budget of Continued Consolidation was prepared with input from stakeholders in all seven geopolitical zones of our state. pic.twitter.com/6ys0XFOgh1
— Seyi Makinde (@seyiamakinde) November 23, 2020
According to NAN, Mr. Makinde disclosed on social media that the ‘Budget of Continued Consolidation’ was prepared with input from stakeholders in all seven geopolitical zones of the state.
“The total budgeted sum is ₦266.64billion The Recurrent Expenditure is ₦136.26billion, while the Capital Expenditure is ₦130.38billion. We are again, aiming for at least 70% implementation of the budget,” he said.
The News Agency of Nigeria also disclosed that infrastructure spending in the budget would be N46.06billion – representing 17.27% of the total budget and an increase of N33.66 billion over that of last year.
Other sectors include Agriculture which represents 3.6% valued at N9.58billion and Healthcare taking 4.9% of the budget with an N13.29billion allocation.
The Governor disclosed that Oyo has reduced its infrastructure deficit and made improvements in the areas of healthcare, education, and others.
“We have been able to lower our infrastructural deficit, make improvements in healthcare delivery, improve the quality of education, and achieve milestones in our security systems,” he said.
He also added that the state had recorded a 26% increase in IGR at N25.6 billion and hopes to increase IGR to over N100 billion for the 2021 budget.
“As of September, we had recorded an IGR of N25.6 billion. And using the half-year figures, it represented a 26.4% increase in IGR year-on-year. Oyo State’s IGR is presently about 32% of actual aggregate revenue.
“We still have not achieved a total dependence on the state’s income outside of the federal allocation to fund the budget. Slowly, but surely, we are getting there.
“For the 2021 budget, our plan is to increase our annual IGR to N102.82billion. We hope to achieve this by widening the tax net to bring in more taxpayers into the system,” he added.
Restructuting: Plans must pass through legal process from the National Assembly – Tambuwal
Tambuwal has insisted that plans to restructure Nigeria and the Constitution must pass through due process from the National Assembly.
The Governor of Sokoto State and Former House of Reps Speaker, Aminu Tambuwal, has said that any plan to restructure Nigeria and the Constitution must pass through legal due process from the National Assembly.
Tambuwal disclosed this at a plenary session of the 26th Nigerian Economic Summit, titled: “Building partnerships for resilience” in Abuja on Monday.
Tambuwal warned that Nigeria must learn from mistakes 0f 2015 when the last attempt to amend Nigeria’s constitution was rejected after the first reading.
He added that any plan to restructure must be done after amending the constitution, which must pass through the assembly.
“As it were at the moment, whatever you are going to do about the constitution, has been prescribed by the constitution and how you are going to do it.
“The constitution has prescribed how a word in that constitution is going to be amended.
“Except of course we are saying we are going to jettison the National Assembly and the State Assemblies in getting it done, which is not possible,” he said.
“So you cannot go outside of the constitution to amend the constitution. We better come to terms with this realization and to come together and agree on how best we can work together to achieve what the nation desires,” he added.
What you should know
The agitations from the October protests in Nigeria have revived talks about restructuring in Nigeria. Earlier this month, the Governors of Ekiti and Kaduna State, Kayode Fayemi and Nasi El-Rufai argued that restructuring was a means to end Nigeria’s economic troubles.
“In essence, our desire to build a more perfect union should be anchored on the principle of devolution of powers – that is, re-allocation of powers and resources to the country’s federating units.
“The reasons for this are not far-fetched. First, long years of military rule have produced an over-concentration of powers and resources at the centre to the detriment of the states. Two, the 1999 Constitution, as has been argued by several observers, was hurriedly put together by the departing military authority and was not a product of sufficient inclusiveness.
“All points considered, the fiscal burden of maintaining a largely inefficient and over-bloated bureaucracy is a metaphor for shooting oneself on the foot,” Fayemi said.