The majority shareholder of Flour Mills of Nigeria Plc (FMN) has obtained all requisite regulatory approvals to propose a buy-out offer to minority shareholders.
FMN disclosed this in a statement on Tuesday, 24th September 2024. According to the company, its majority shareholder has offered to buy out minority shareholders.
According to the company, “The process, which is being conducted through a scheme of arrangement, has received a “No Objection” from the relevant regulators, namely the Nigerian Exchange Limited (“NGX”); the Securities and Exchange Commission of Nigeria (“SEC”). This 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 improve management efficiency and decision-making process, allowing the company to operate more agile. 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. The resolution will be deemed approved if at least 75% of the members who are present and voting, either in person or by proxy, support the resolution during the Court Ordered Meeting (COM).”
Commenting, FMN’s Group Managing Director, 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 ten-year vision of building a company that is sustainable, resilient, dynamic, and adaptable in its people, systems, and structures.”
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