Here’s why court order forced Dangote Flour Mills to postpone its AGM

Dangote Flour Mills has postponed the company’s Annual General Meeting (AGM) for the year ended 2018 due to a court order. The postponement was disclosed in a statement by the company’s Secretary, Aisha Ladi Isa.

Dangote Flour Mills informed its shareholders and investing public that the postponement has been approved by the Corporate Affairs Commission (CAC). According to the statement seen by Nairametrics, the company must hold the AGM on or before December 21, 2019.

Why the postponement? The acquisition offer from Olam International Limited for shares of Dangote Flour Mills had led to a court-ordered meeting. On April 23, 2019, Olam International Limited had offered to acquire the entire issued shares of the company which is not currently held by Olam International through its subsidiary, Crown Flour Mills Limited.

Nairametrics had reported that Olam International Limited offered a total of N130, 000,000,000.00 to buy out the entire issued shares of Dangote Flour Mills Plc. Crown Flour Mills Limited holds a total of 5, 113,229 units of shares in Dangote Flour Mills.

According to the statement which was made public on the Nigerian Stock Exchange (NSE), the court had ordered Dangote Flour Mills to recommend the offer from Olam International Limited to the company’s shareholders on October 14, 2019. The court-ordered meeting came after Dangote Flour Mills received regulatory approval.

Due to the court-ordered meeting, Dangote Flour Mills decided to postpone the AGM as the company feels holding the AGM shortly before the court-ordered meeting will not be practical.

How Olam offer boosted share price: The week Dangote Flour Mills received the offer, the company ranked as the best performing stock on the NSE on April 27, 2019. The stock appreciated by 45.33%, opening at N10.70 and closing at N15.55, up N4.85.

How the transaction will be executed: 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

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