By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Flour Mills Plc operating in the Food/Beverages & Tobacco sector of the Nigerian Stock Exchange (NSE) has proposed to go into electric power generation by floating a new firm Flour Mills Power.

Emmanuel Ukpabi, Group Managing Director (GMD) of the Company made this affirmation recently in Lagos Nigeria at its “Facts behind the Figures” presentation to the Nigeria’s Exchange.

He affirmed that the excess power which the new Company will generate will go into the National grid.

“And the excess power which we will generate will go into the grid, so it will not be a question of having very few people benefiting from it, everybody will benefit from it. We will send it to the grid and we would be compensated” Ukpabi said.

The setting up of the Power Company will be part of the special business to be considered as a special resolution at Flour Mills forthcoming 51th Annual General Meeting (AGM) to be held in Lagos Nigeria.

As a special resolution, the Firm is seeking to amend its Memorandum and Articles of Association to include engaging in the business of electric power generation, transmission, distribution, trading, energy or power rentals and sales.

“Flour Mills is also to establish, run, carry on business as proprietors and managers of electric power works and to this end to own and operate power generation stations” Ukpabi said.

According to him, Flour Mills just have to go into other areas of business so as to financially break-even, exploit potentials in Nigeria and create employment.

“We just have to go into other businesses, there are 22 Mills in the country now, and we want to be sure that these people do not catch up with us. The Margin in Flour is very small; because of the pricing of wheat, so we have to go into other things; thereby creating employment. We have to go into other areas and exploit the potentials we have in Nigeria and make Nigerians very happy” he said.

This is coming on the heels of a proposed Rights Issue of N28 billion by the Company seeking to offer 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 had affirmed that the Rights Issue to raise the N28 billion is primarily to finance capital projects in furtherance of the Firm’s strategic investments in Food, Agro-Allied, Cement and to strengthen its working capital.

In the same vein, the Company has assured Minority Shareholders and promised to carry them along in the proposed N28 billion Rights Issue.

Ukpabi called on them to take up their Rights when Flour Mills commence the fund raising.

“We are asking the Minority Shareholders to get their money ready and we will give you all opportunity to make sure you are part of us. The money we are raising about N28 billion, we know is not enough for what we are going to do; but I assure you that the planned acquisition that Flour Mills has embarked upon; will make all Shareholders smile, we are very conscious of that” Ukpabi said.

According to him, Flour Mills which commenced operations in 1962 with a capacity of about 500 metric tonnes per day is seeking to increase it to 8,500 metric tonnes per day from its current capacity of 6,500 metric tonnes per day

“Our emphasis is still on food business; Flour, Sugar, Semovita, edible Oil and so on, so we are emphasizing this because there are places we are going and we have to expand; from our present capacity, 6,250 Metric tonnes per day and by this time next year, we would be on 8,500 Metric tonnes per day; so we have to continue to expand and go into new ventures” he said.