Flour Mills Moves to Consolidate Ownership After SEC Approval
Regulatory approvals have just been granted for the buyout of Flour Mills of Nigeria’s minority shareholders. FMN, one of the largest Agro-allied businesses in Nigeria, intends to execute a “scheme of arrangement” approved by NGX and SEC to see the deal through. This will be consistent with the long-term strategic plans of FMN aimed at smoothening its operations such that its entities would better align with positioning for future growth.
The company is expected to proceed to a Court-Ordered Meeting, COM, in November 2024, where it is expected that the shareholders would vote in support or against the buyout. It was believed that if approved, FMN may leave NGX, while Excelsior Shipping Company Limited, a current shareholder now holding 62.95% of FMN’s shares, assumes full control. This buyout is seen as part of FMN’s larger dream of emerging as a pan-African leading food business and may also lead to restructuring on the model of a holding company, similar to several other large corporations, including Dangote.
