Singapore-based commodity trader, Olam International, on Tuesday said it will buy Nigeria’s Dangote Flour Mills for an enterprise value of N130 billion ($424.9 million), as it looks to bolster its position in Nigeria’s wheat market.
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.
