By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Fast Moving Consumer Goods (FMCG), Flour Mills of Nigeria Plc (FMN) said on Thursday it plans to conduct a restructuring by merging five (5) of its subsidiaries with its holding company (HOLDCO) under a Scheme of External Restructuring.
Paul Miyonmide Gbededo, group managing director (GMD) of the company while announcing the plan in a notice to the Nigerian Stock Exchange (NSE) said the company has obtained the approval-in-principle of the Securities and Exchange (SEC) to merge five (5) of its wholly owned subsidiaries.
The subsidiaries are Golden Noodles Nigeria Limited, Golden Transport Company Limited, FMN Cement Industries Limited, New Horizon Flour Mills Limited and Quilvest Properties Limited with Flour Mills of Nigeria Plc.
Gbededo said the principle reason for the restructuring is the need to streamline operations, reduce administrative costs, improve operating efficiency and derive full benefits of synergy in line with the company’s long term strategic thrust.
“The enlarged FMN, upon completion of the restructuring would be able to eliminate transfer costs of material and operate at a higher level of efficiency which will drive down cost, make product pricing more competitive, improve profitability and enhance the bottom line for the benefit of all stakeholders,” he said.
On his part, while commenting on the restructuring plans, Olalekan Saliu company secretary affirmed that the management of the various companies had jointly obtained an Order of the federal High Court directing that Court Ordered Meetings of their respective shareholders be held on Wednesday 9th September, 2015 for the purpose of approving the restructuring.
“Where the shareholders give the requisite approval, the final approval of SEC will be sought and the Federal High Court will thereafter be approached to sanction the merger. The restructuring is expected to be concluded in October 2015,” Saliu added.
