By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Flour Mills of Nigeria Plc has proposed to raise fresh funds of N28 billion through Rights Issue. Emmanuel Ukpabi, Group Managing Director (GMD) of the Company disclosed this at the “Facts behind the Figures” Tuesday on the Floor of the Nigerian Stock Exchange (NSE) in Lagos Nigeria.

Ukpabi affirmed that the Board of Directors of (BOD) Flour Mills has taken a decision to raise fresh funds by way of Rights Issue to shares to existing shareholders.

According to him, the Directors of Flour Mills will propose for shareholders to approve at the Company’s Annual General Meeting (AGM) scheduled for Wednesday September 07 2011 at Eko Hotel & Suites in Lagos Nigeria a Rights Issue of up to 500 million Ordinary Shares of 50 Kobo each at a ratio and price to be determined by shareholders and approved by the Securities and Exchange Commission (SEC).

Ukpabi said the Rights Issue to raise the N28 billion is primarily to finance capital projects in furtherance of the Firm’s strategic investments in Food and Agro-Allied, Cement and to strengthen its working capital.

The N28 billion we know is not enough with what we are about to do, but I can assure you that the planned acquisitions that Flour Mills has embarked upon, will make the Firm one of the best in the industry.

While speaking at the event, Oscar Onyema, the Chief Executive Officer (CEO) of the Nigeria’s Exchange congratulated the Firm for coming forward to provide the Market with information about Flour Mills. “This is important as our Market is information driven” he said.

According to him, the Nigeria’s Exchange is working very hard at improving investor confidence in the Market. “As a matter of fact, majority of our efforts are focused on getting back investors’ confidence” the CEO affirmed.

“For instance, we have decided to put in place strong, firm but fair regulations. Our regulations will be strong, firm but fair to all. We have realised that this is essential to make our Market choice investment destination.

To get this done, we are taking holistic view of all rules and regulations that guide our operations as an Exchange. Doing this will enable us to be more proactive and be in better position to meet the needs of all stakeholders in the Market” Oscar said.