By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Nigeria’s top miller, Flour Mills of Nigeria Plc (FMN) said on Tuesday it will raise fresh fund of N40 billion via a rights issue, the miller disclosed in an issuer’s announcement with the Nigerian Stock Exchange (NSE).

The company said it will hold an extraordinary general meeting (EGM) scheduled for July 15, 2015 where it will consider and if thought fit, approve with or without modification the raising of N40 billion via rights issue.

“That subject to the company obtaining all required regulatory approvals, the directors of the company be and are hereby authorised by way of rights to existing shareholders additional equity capital of up to N40, 000,000,000 (Forty Billion Naira) in the unissued share capital of the Company and which issue shall be effected at such price, time and on such terms as the directors of the company may deem fit,” the FMN added.

According to Flour Mills of Nigeria, in the event of an under-subscription to the rights issue, the shareholders are to waive their pre-emptive rights to any unsubscribed shares under the offer “and the directors are authorised to issue such shares to interested investors as, as far as practicable, on similar terms as the rights issue,’ the miller affirmed.

FMN says the proceeds of the rights issue shall be used for such lawful purposes of the company as the directors of the company may consider appropriate.

Also, directors of the milling firm are
authorised to do all acts and things and to approve, sign and/or execute all documents, appoint such professional parties and advisers, perform all such other acts and do all such other things as may be necessary to give effect to the above resolutions, including without limitation, complying with the directives of any regulatory authority.

Another resolution to be considered and approved at the EGM is to increase  authorised share capital of the company from
N2.0 billion to N2.5 billion  by the creation of additional one (1) ordinary shares of 50 kobo each ranking pari passu with the existing ordinary shares of the company.

At the time of filing in this report, we were unable to reach officials of the company via phone to provide more details on the proposed fresh fund raiser.