FLOUR MILLS OF NIGERIA TO BUY OUT MINORITY SHAREHOLDERS AFTER SECURING REGULATORY APPROVAL
Flour Mills of Nigeria Plc (FMN), one of Nigeria’s largest food and agro-allied companies, has announced plans to buy out its minority shareholders following approval from key regulatory bodies. The company disclosed this development on Tuesday, stating that its majority shareholder would propose a formal buyout offer to minority shareholders.
The buyout will be conducted through a scheme of arrangement, having secured approvals from the Nigerian Exchange Limited (NGX) and the Securities and Exchange Commission (SEC). This move is part of FMN's broader strategy to streamline its ownership structure, allowing for improved operational efficiency and decision-making.
According to Boye Olusanya, FMN’s Group Managing Director, the buyout aligns with the company's long-term vision of becoming a leading pan-African food business. The restructuring is expected to enhance FMN’s agility, positioning it for sustainable growth and innovation.
The next step in the process involves filing an application with the Federal High Court to convene a shareholder meeting, where at least 75 percent of members must approve the buyout resolution during the Court-Ordered Meeting (COM). FMN’s board has already recommended the proposal, emphasizing its potential to strengthen the company's ability to attract investments and create long-term value.
This strategic move is expected to bolster FMN's ability to innovate and expand, further solidifying its leadership in the food sector across Africa.
Flour Mills of Nigeria Plc (FMN), one of Nigeria’s largest food and agro-allied companies, has announced plans to buy out its minority shareholders following approval from key regulatory bodies. The company disclosed this development on Tuesday, stating that its majority shareholder would propose a formal buyout offer to minority shareholders.
The buyout will be conducted through a scheme of arrangement, having secured approvals from the Nigerian Exchange Limited (NGX) and the Securities and Exchange Commission (SEC). This move is part of FMN's broader strategy to streamline its ownership structure, allowing for improved operational efficiency and decision-making.
According to Boye Olusanya, FMN’s Group Managing Director, the buyout aligns with the company's long-term vision of becoming a leading pan-African food business. The restructuring is expected to enhance FMN’s agility, positioning it for sustainable growth and innovation.
The next step in the process involves filing an application with the Federal High Court to convene a shareholder meeting, where at least 75 percent of members must approve the buyout resolution during the Court-Ordered Meeting (COM). FMN’s board has already recommended the proposal, emphasizing its potential to strengthen the company's ability to attract investments and create long-term value.
This strategic move is expected to bolster FMN's ability to innovate and expand, further solidifying its leadership in the food sector across Africa.