SINGAPORE - Agri and food giant Olam International has submitted a binding offer to fully acquire Nigerian flour and pasta manufacturer Dangote Flour Mills (DFM) for 130 billion naira (S$491.09 million), Olam said on Tuesday (April 23).

The proposed transaction would include DFM's five flour and pasta manufacturing facilities and its logistics capabilities, including access to the ports of Apapa and Calabar.

It is part of Olam's strategy to strengthen its portfolio by investing in proven businesses where it has consistently performed and gained market-leading positions, the company said. Olam currently operates wheat milling and flour and pasta manufacturing in Nigeria and Sub-Saharan Africa.

"We are confident about the growth prospects in this country and this acquisition, doubling our installed capacity here, is evidence of our long-term commitment to the Nigerian economy," said K.C. Suresh, managing director and CEO of Olam Grains and Animal Feed.

"Since 2010, when we first acquired Crown Flour Mills in Nigeria, Olam has invested in and grown a world-class wheat milling franchise with a strong regional footprint across four countries in Sub-Saharan Africa. Bringing together Olam and DFM would provide enhanced manufacturing capacity and create synergies with our existing business to deliver improved products to meet customers' needs in the market."

The transaction is subject to the approval of DFM's shareholders, regulatory approvals, the sanction of the Federal High Court of Nigeria and the absence of material adverse change in DFM, among other things. Upon satisfactory fulfilment of the conditions, DFM will be delisted from the Nigerian Stock Exchange.