By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) Monday approved the proposed N28 billion Rights Issue of Flour Mills Nigeria Plc at N62.00 per share. This was contained in a notice by the NSE and obtained by InvestAdvocate in Lagos Nigeria.
The Quotations Committee of the Management of the Nigeria’s Exchange approved Flour Mills Rights Issue of 455,566,222 shares of 50 kobo each at N62.00 per share and Stockbrokers to the Issue are Stanbic IBTC Stockbrokers Limited and CSL Stockbrokers Limited.
Recently, Emmanuel Ukpabi, Group Managing Director (GMD) of the Company disclosed at the “Facts behind the Figures†of the Food/Beverages & Tobacco Giant on the Nigeria Bourse that the Company is proposing to raise N28 billion via a Rights Issue.
With approval of 455,566,222 shares of 50 kobo each at N62.00 per share, the total amount sought to be raised by Flour Mills Nigeria is N28, 245, 105, 764.
Ukpabi had affirmed that the Board of Directors (BOD) of Flour Mills will propose to shareholders the plans to raise the amount via Rights; subject to their approval and that of Securities and Exchange Commission (SEC) at its forthcoming Annual General Meeting (AGM) scheduled for Wednesday September 07 2011 at Eko Hotel & Suites in Lagos Nigeria.
According to him, the fresh funds sought to be raised is primarily to finance capital projects in furtherance of the Firm’s strategic investments in Food, Agro-Allied and Cement as well as 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†Ukpabi said.
The Company has reported that its overall strategy is to grow and diversify into sustainable food business that has synergies to existing operations.
On Food business, Flour Mills Nigeria intends to expand the consumer arm of its Food Business; organically and through targeted acquisitions and/or joint ventures.
In the Agro-Allied business, the Firm intends to establish new line of business in processing edible oils, expand capacity at Premier Feed Mills and have an additional Farmland for cultivating Sugarcane, Palm Trees, Maize, Soybeans and possibly rice to be acquired in various locations across Nigeria.
As part of its strategy to expand, the Firm intends to go into strategic initiatives to enhance its position in the Cement Sector by increasing local manufacturing rather than Cement importation.
