Article
By Alex C
Dangote Flour Mills Plc, through its Board, has notified the Nigerian Stock Exchange (NSE) that it has executed a Share Sale and Purchase Agreement (SSPA) with Dangote Industries Limited in respect of sale of the company’s 84,150,000 ordinary shares of N1.00 each in Dangote Agrosacks Limited representing 99% of the total issued ordinary share capital of Dangote Agrosacks Limited.
The execution of the SSPA followed the receipt of approvals from the board and shareholders of Dangote Flour Mills Plc, as well as requisite regulatory approval from the Securities & Exchange Commission (SEC).
This follows a strategic review of Dangote Flour Mills Plc portfolio of businesses, aimed at aligning its core business areas with that of its core shareholder, Tiger Brand Limited, thereby focusing on its food related businesses going forward.
According to the Company, the divestment is in furtherance of DFM’s group-wide business optimisation initiative, aimed at ensuring that the Company is efficiently structured to maximise shareholder value and sustain its market leadership position in the Nigerian Food and Beverages Sector.
Dangote Agrosacks Limited was incorporated as private limited liability company on August 25, 1998 and began operation in May, 1999. Dangote Agrosacks Limited is involved in the manufacture and sale of polypropylene sacks, majorly for the companies within the Dangote Group, as well as other users.
Dangote Agrosacks Limited products include cement bags, flour bags, sugar bags, salt bags and market bags production lines and 6 regular lines across 3 plant locations in Nigeria (Oba Akran and Israel Adebanjo in Ikeja as well as Obajana in Kogi State).
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