Hope rises for Alata Flour Mill as investor makes takeover bid
The Alata Flour Mills Ltd, which has stopped production for years, sequel to the death of its founder and chairman, Chief Adebayo Amao-Alata in 1992, may soon come back to life as an Abuja based company, Labent Nigeria Ltd, has made moves to take it over, ogbomosoinsightonline.com authoritatively learned.
“However, the agreement will not involve outright sale of the company to the bidding company,” a family source informed on conditions of anonymity, adding, “It is not going to be total sale, it will be a kind of partnership arrangement as the name ‘Alata,’ we have requested, will reflect in the new name the industry will bear.”
Asserting that the “Alata” nomenclature is a heritage to be preserved, the source informed however that a final agreement had not been reached, as “the new investor would carry out a study of the place for six months before a conclusion is made.”
Labent is said to be a company that has vast experience in flour milling and is interested in investing in the Alata Flour Mills, “But we will have to see how it goes after six months window period,” it was submitted.
According to information the industrial layout sitting on a large acre of land, along Ilorin road, Ogbomoso, Oyo state, boasts state-of-the-art flour milling equipment many of which are still in good conditions.
It is further gathered that several investors had attempted the purchase of the company in the past with some offering as much as N500m (five hundred million naira) but the family often refused as the bidders were not disposed to meeting certain conditions outlined by the family.
A household name, Alata Flour Mills Ltd flourished in the 1980s, with many indigenes and expatriates in its employ, producing much-sought after flour. It nourished the economy of Ogbomoso as it triggered cash inflow into Ogbomoso.
The founder, Chief Alata, had several other companies in the community, the volume of which earned him the title of “Babalaje of Ogbomosoland” from the departed king, Oba Oladunni Oyewumi Ajagungbade III JP CON CFR, and which caused his name to be immortalized.
His demise in March 1992 was thus a great loss as his big shoes in the business environment is yet to be filled.