The shareholders of Dangote Flour Mills Plc have unanimously endorsed the acquisition of the company by Crown Flour Mills Limited, the Nigerian subsidiary of Olam International Limited.
The shareholders gave their approval after Olam made a payment of N120 billion. The acquisition was carried out through a Scheme of Arrangement as most of the shareholders who spoke at the meeting lauded the company’s management for the noble decision.
Speaking on the acquisition, the Managing Director (MD), Crown Flour Mills Limited, Anurag Shukia, made known that there were plans aimed at maintaining and expanding Dangote Flour Mills while also providing and enhancing manufacturing capacity to deliver improved products to customers across the country.
Prior to now, Olam made an offer for the acquisition of 100% equity in Dangote Flour Mills for consideration of N24.00 per share.
Nairametrics had reported of an earlier offer by Olam International Limited to buy out the entire issued shares of Dangote Flour Mills Plc.
However, the fact that Crown Flour Mills held a total of 5,113,229 units of shares in Dangote Flour Mills, and intended to buy out the entire issued shares of Dangote Flour Mills led to a court-ordered meeting.
As a result of the court-ordered meeting, Dangote Flour Mills informed its shareholders and investing public of the postponement of its Annual General Meeting (AGM) for the year ended 2018.
What you should know: The acquisition brings the 4,994,886,771 ordinary shares of 50 kobo each owned by Dangote Flour Mills to Crown Flour’s hold.
The shareholders of Dangote Flour Mills are said to benefit an enhancement in the value of their investment in the company and exit at attractive pricing. Also, the scheme, through which the acquisition was carried out, will create improved revenue generation capacity, reduced operational costs and enhanced profit between Dangote Flour mills and Crown Flour.
Nigeria needs urgent economic diversification – AfDB
The AfDB said that the diversification of the Nigerian economy had become important for it to respond favourably to the emerging challenges of the 21st century.
The African Development Bank has stated that Nigeria, Africa’s largest economy, needs urgent economic diversification to move the country from a single income source (oil and minerals) towards multiple income sources.
This was disclosed by Prof. Oyelaran-Oyeyinka Oyebanji, Senior Special Adviser on Industrialisation at African Development Bank (AfDB), at the 22nd Founder’s Day Lecture of the Igbinedion University, the first private university in Edo state, on Monday.
What the AfDB said about diversification
“In pursuit of long-term recovery and sustainable development, Nigeria needs urgent economic diversification. Nothing is more poignantly demonstrative of the danger of over-reliance on a single or narrow range of commodities than the recent crash in oil price we saw in 2020 due to the COVID-19.
Economic diversification entails a shift away from a single income source (oil and minerals) toward multiple income sources from an increasing spectrum of sectors, products and markets,” he said.
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The International Monetary Fund (IMF) stated earlier this year that economic diversification was important to Nigeria and critical for her economic recovery.
They said the limited gains from inward-oriented policies in terms of creating jobs and improving living standards suggested that Nigeria needed to have a change of strategy. It was pointed out that in order to accommodate a growing number of young people entering the labour market, Nigeria would need to create at least 5 million new jobs each year over the next decade.
Ghana-Nigerian traders dispute: FG to send delegation to Ghana
The delegation will be led by the Minister of Trade, Niyi Adebayo, and comprised of other private stakeholders.
The Nigerian Government will send a delegation led by the Minister of Trade, Niyi Adebayo, to Ghana to end the crisis between Nigerian traders in Ghana and local authorities—an issue that started last year before the Ghanaian Presidential elections.
The delegation was ordered by the Presidency as disclosed in a statement by the trade ministry on Monday evening.
The statement revealed that the delegation would be comprised of private stakeholders also who would be sent to dialogue with Ghanaian trade authorities to find a solution to the crisis.
The meeting between both parties will be held between May 31 and June 1, 2021.
What you should know
Recall Nairametrics reported last year that Ghana’s Foreign Minister, Shirley Ayorkor Botchwey, said that Nigeria’s border closure in 2019 hurt Ghanaians and nearly bankrupted many Ghanaian export businesses after their goods were stuck at the Seme Border for months, reacting to the shutdown of Nigerian-owned shops by Ghanaian authorities last year.
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