Flour Mills of Nigeria (FMN) Plc says its majority investor, Excelsior Delivery Firm, has obtained the approval of the Safety and Alternate Fee (SEC) to purchase out minority shareholders.
Umolu Joseph, FMN director of authorized companies and firm secretary, introduced in a press release on Tuesday.
The bulk shareholder holds 2.59 billion shares or 63 p.c stake, price N142.8 billion as of September 24, in FMN.
Excelsior provided N105.2 billion to purchase the 1.50 billion shares or 37 p.c stake held by the minority shareholders, with every minority investor receiving N70 per share.
“Flour Mills of Nigeria Plc hereby notifies Nigerian Alternate Restricted (NGX) and our esteemed stakeholders that the Firm has obtained a suggestion from the bulk shareholder Excelsior Delivery Firm Restricted to accumulate all shares held by the minority shareholders in Flour Mills (the Transaction),” the corporate stated.
“The Transaction will probably be carried out by means of a Scheme of Association (“the Scheme”) between the Firm and the Firm’s shareholders (“the Minority Shareholders”), in accordance with the provisions of Part 715 of the Corporations and Allied Issues Act 2020 (as amended).
“Below the phrases of the Scheme, the minority shares (being all of the excellent shares of Flour Mills not already held by Excelsior) will probably be acquired by Excelsior.
“The Firm has obtained the Securities & Alternate Fee’s “No Objection” to the Scheme.”
Nevertheless, the supply is topic to the approval of the shareholders of Flour Mills.
In response to FMN, an order has been obtained from the federal excessive court docket to convene a court-ordered assembly on November 5, on the Eko Resort conference centre, for shareholders to think about the buyout supply.
“The Scheme can be topic to the approval of the shareholders of Flour Mills on the Courtroom-Ordered Assembly in addition to the sanction of the Federal Excessive Courtroom,” the corporate stated.
“The phrases and situations of the Scheme are as said within the Scheme Doc, which will probably be dispatched to all shareholders.”
The agro-allied firm stated additional particulars will probably be communicated upon receipt of requisite approvals from shareholders and regulators.
FMN additionally urged the investing public to train warning when coping with the corporate’s shares.
