By Nkiruka Nnorom

Flour Mills of Nigeria, FMN, Plc has obtained all the necessary regulatory approvals to acquire a 71.69 per cent equity stake in Honeywell Flour Mills, HFMP, and another 5.06 per cent stake in HFMP held by FirstBank.

The company stated this in a regulatory filing to the Nigerian Exchange Limited, NGX, signed by the company’s Secretary/Director of Legal Services, Mr. Joseph Umolu, saying the transaction had now been consummated by the parties.

Flourmill noted in the notice that the acquisition had been approved by all relevant regulators, including the Federal Competition and Consumer Protection Commission, FCCPC, the NGX and the Securities and Exchange Commission, SEC.


According to the statement, Flour Mills will be paying N4.2 per share for the 71.69 per cent stake in the Honeywell, which translates to a 13.5 per cent premium to the N3.7 closing price reported on Friday at the exchange.

It would be recalled that FMN had in November last year announced the plan to acquire majority stake in Honeywell, stating that the proposed transaction will combine two businesses with shared goals and create a more “resilient national champion” in the Nigerian foods industry, while ensuring long-term job creation and preservation.

According to FMN’s management, the acquisition of HFMP is in line with it’s 5-year plan, which includes organic and inorganic growth

The company stated that the acquisition supports it’s drive to expand into the B2C space, where they see better profitability.

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