SEC, NGX approve Flour Mills minority shareholders buyout
Securities and Exchange Commission and Nigerian Exchange Limited have given Flour Mills of Nigeria approval to plan to buy out minority shareholders.
FMN, in a release on Wednesday, stated that its majority shareholder had offered to buy out minority shareholders.
“The process, which is being conducted through a scheme of arrangement, has received a “No Objection” from the relevant regulators, namely the Nigerian Exchange; and the Securities and Exchange Commission of Nigeria.
According to the firm, the strategic move, which the board of the company has recommended, offers the majority shareholder the flexibility to properly align the FMN entities according to their peculiarities, in addition to seeking, attracting and obtaining the necessary investment in line with the vision of each entity, with a focus on long-term growth and value.
“It is also expected to lead to improved management efficiency and decision-making process, as it allows the company to operate with greater agility. Having notified the NGX and the SEC of the offer made by the majority shareholder to acquire the shares of all other shareholders; and the resolution of the board to recommend the offer to shareholders for consideration and approval if deemed fit, an application shall now be filed before the Federal High Court to convene a shareholders’ meeting during which a resolution to buy out minority shareholders will be proposed and passed, if agreeable to the shareholders,” FMN declared.
It was explained that the resolution would be considered approved if at least 75 per cent of the members present and voting, either in person or by proxy, support the resolution during the court-ordered meeting.
Commenting, Group Managing Director, FMN, Mr Boye Olusanya, stated, “In line with FMN’s ambition to become the leading pan-African Food business that feeds and enriches the lives of its consumers every day with quality brands, this move aligns with our strategy aimed at positioning the company to achieve its 10-year vision of building a company that is sustainable, resilient, dynamic and adaptable in its people, systems, and structures.”
The PUNCH reports that FMN recently inaugurated a solar-powered clean water plant it financed for the Gbaji-Yeke Community, Badagry.
The firm said the solar-powered clean water plant was a testament to Flour Mills of Nigeria’s unwavering commitment to driving sustainable growth across Nigeria.
