BY MICHAEL EBOH

Flour Mills of Nigeria Plc, in a bid to pursue its medium and long term strategic goals and investments in its business, is seeking the approval of its shareholders to shore up its capital base through a N1 billion bond issuance programme.

The company, according to a statement signed by Chairman of the company, Mr. George Coumantaros, will also be seeking the approval of its shareholders, at its forthcoming extraordinary general meeting on Wednesday, June 22, 2011, to enable it absorb Golden Pasta Company Limited.

Coumantaros said that at the meeting, shareholders’ approval would be obtained for a sub-joined resolution authorising the Directors of the company to issue shares by way of rights to existing shareholders or an offer for subscription to the general public.

He said that the additional equity capital to be raised would position Flour Mills of Nigeria to pursue potentially high growth business opportunities without stretching its balance sheet.

“Areas of opportunities being considered are: expanding existing food business and exploring new opportunities in the Fast Moving Consumer Goods (FMCG) segment by growing organically and/or through targeted acquisitions; growing agro-allied business by growing organically and/or targeted acquisitions; consolidating and growing the company’s interest in the cement sector,” he said.

Coumantaros expressed confidence that the investments will enhance its earnings generating capacity and consequently improve shareholder value in the medium to long term.