SEC, NGX Approve Buy-out Offer of Flour Mills Majority Shareholder

By Aduragbemi Omiyale

The proposed buy-out offer of the majority shareholders of Flour Mills of Nigeria Plc to minority investors has been approved by the Securities and Exchange Commission (SEC) and the Nigerian Exchange (NGX) Plc.

This strategic move, which has been recommended by the board of the company, is expected to lead to improved management efficiency and decision-making process, as it allows the company to operate with greater agility.

The majority shareholder intends to take full control of the flour milling firm for flexibility to properly align its subsidiaries 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.

“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,” the group managing director of Flour Mills, Mr Boye Olusanya, said.

The buy-out process is being conducted through a scheme of arrangement and an application would 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 per cent of the members who are present and voting, either in person or by proxy, support the resolution during the Court Ordered Meeting (COM).