Shareholders of Flour Mills of Nigeria Plc have given a unanimous approval to the company’s bid to acquire 90 per cent equity shareholding in ROM Oil Mills Limited.

The approval was given at the company’s 52nd Annual General Meeting in Lagos on Wednesday.

Also at the meeting, the company’s Board of Directors was given the go-ahead to acquire equity stake in any food and agro-allied business in furtherance of the company’s long-term business model.

Speaking at the meeting, the President, Nigerian Shareholders Solidarity Association, Chief Timothy Adesiyan, commended the company for its strategic investment plans that are aimed at increasing its holdings and growing its capital base.

He noted specifically that the company was investing in agricultural and farming businesses in line with the Federal Government’s focus on the agricultural sector as means of channeling more foreign direct investments into the country.

He said, “On behalf of the shareholders, I want to congratulate our company, Flour Mills for its dedication towards growing the agricultural sector, and especially on its planned acquisition of ROM Oils.

“We know that this move will go a long way in supporting our previous investment in Kaboji Farms, as it would help in the production of edible oils needed by many of our customers across the country.”

He also called on the company to put more efforts into reducing its cost of sales, adding that this would improve its profitability.

Also speaking at the meeting, the National Co-ordinator, Independent Shareholders’ Association of Nigeria, Mr. Sunny Nwosu, commended the company on its move geared towards re-branding the company and improving its profitability.

He, however, urged the management to focus on increasing its holding in the cement business, adding that its current 28 per cent holding in United Cement Company of Nigeria Limited, for instance, could be increased to enable the company have further diversification.

The Chairman of the Company, Mr. George Coumantaros, noted in a statement that the acquisition of ROM Oils was taken in furtherance of the company’s focus on its Food and Agro-allied Business, consistent with the Federal Government agriculture transformation agenda.

He said, “The acquisition is subject to obtaining necessary regulatory approval and the company will continue to operate as a separate entity after the acquisition.

“The proposed investment will further improve group synergies as part of the raw materials used in the production of refined edible oils and associated products will be sourced from the group’s commercial farming business.”

He noted that shareholders would record increased dividend in the coming years when returns on their strategic investments would have begun to roll in.

Source: Punch/Udeme Ekwere