Flour Mills of Nigeria (FMN) Plc has entered into an agreement with First Bank of Nigeria (FBN) Limited to acquire the Bank’s 5.06% equity in Honeywell Flour Mills Plc (HFMP), plus the 71.69% majority shareholding interest in Honeywell.
Consequently, upon completion of the acquisition, and subject to obtaining all requisite regulatory approvals, Flour Mills is set to hold a cumulative 76.75% equity interest in HFMP.
Company Secretary/Director, Legal Services, FMN, Molu Joseph, in a message to The Nigerian Exchange (NGX) at the weekend, added that “Further details will be communicated to the market upon relevant approvals from regulators.”
Joseph explained that given FMN’s parallel negotiations for both stakes culminating in the agreements being signed on the same date, the basis for arriving at key commercial terms including final equity price per share, will be the same. The price payable to FirstBank will be the same as HGL’s.
Commenting on the transaction, Group Managing Director of FMN, Omoboyede Olusanya, said: “The proposed transaction is part of our global growth strategy; which is aligned with our vision to not only be an industry leader but also, a national champion for Nigeria in the Food and Agro-allied industries.”
The proposed transaction is part of our global growth strategy; which is aligned with our vision to not only be an industry leader but also, a national champion for Nigeria in the Food and Agro-allied industries.
