November 22, 2021/NGX
Flour Mills of Nigeria Plc (“FMN”) announced that it has reached an agreement with Honeywell Group Limited (“HGL”), the majority shareholder of Honeywell Flour Mills Plc. (“HFMP”), to acquire a 71.69% majority shareholding interest in HFMP. In addition, FMN also entered into an agreement with First Bank of Nigeria Limited (“FirstBank”) to acquire the Bank’s 5.06% equity in HFMP. Consequently, upon completion of the acquisition, and subject to obtaining all requisite regulatory approvals, FMN is set to hold a circa 76.75% equity interest in HFMP.
Given FMN’s parallel negotiations for both stakes culminating in the agreements being signed on the same date, the basis for arriving at key commercial terms including final equity price per share, will be the same. The price payable to FirstBank will be the same with HGL’s.
Further details will be communicated to the market upon obtaining relevant regulatory approvals from the regulators.
Shareholders and potential investors are advised to exercise caution when dealing in FMN’s shares until a further announcement is made.
Commenting on the transaction, Omoboyede Olusanya, Group Managing Director of FMN, said: “The proposed transaction is part of our global growth strategy, which is aligned with our vision to not only be an industry leader, but also, a national champion for Nigeria in the Food and Agro-allied industries.
