Abraaj Group to acquire the entire issued share capital of Fan Milk International (FMI)

Fan Milk Limited Ghana (FML) announces that the Abraaj Group, a leading investor operating in growth markets, has entered into a conditional agreement to acquire the entire issued share capital of Fan Milk International (FMI),  West Africa’s market leading manufacturer and distributor of frozen dairy products and juices. FMI is the majority shareholder of FML.

Established over 50 years ago, FMI possesses
an impressive track-record of organic growth in West Africa where it has become the undisputed market leader in frozen dairy products. FMI currently operates through subsidiaries in the rapidly growing markets of Ghana, Nigeria, Togo, Ivory Coast, Benin and Burkina Faso.
The company has successfully built and controls a unique and fully integrated regional manufacturing and distribution cold chain network, as well as a broad portfolio of convenience food and beverage brands that reaches over 31,000 end-sales points. FMI, through its subsidiaries, currently sells over 1.8 million products on a daily basis across West Africa.    
FMI’s range of frozen dairy and beverage products supply some of the world’s fastest growing consumer, youth and urban markets with projected private consumption growth rates ranging from 4.2% to 9.9% and GDP growth rates of up to 8.3% across FMI’s core, target markets in West Africa. (Source: EIU)
Upon the completion of the purchase of FMI, FMI will continue to be the majority shareholder of FML but Abraaj will indirectly acquire effective control of FML through its control of the 65,822,250 voting shares of FML (representing 56.64% of the equity of FML) that are owned by FMI.

Abraaj has made an application to the Securities and Exchange Commission (SEC) for an exemption, under the Code on Takeovers and Mergers, from the equirement to make a mandatory takeover offer for the remaining shares of Fan Milk Limited. The completion of the transaction is conditional upon the grant of an exemption by the SEC.

Abraaj is a private equity investor operating in the developing and growth markets of Africa, Asia, Latin America and the Middle Eat. FMI has holdings in FML, Emidan A/S, Fan Milk Nigeria, Fan Milk Togo, Fan Milk Code D’Ivoire, Fan Milk Benin, Fan Milk Burkina Faso, Abebe Adewara Ventures and Fan Milk Liberia.
Courtesy GSE.

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