By Chukwuma Umeorah
Flour Mills of Nigeria (FMN) Plc has raised its minority buyout offer to N86 per share, up from the initial N70, following demands from shareholders at a Court-Ordered Meeting (COM) held on November 14, 2024, in Lagos.
The revised offer secured overwhelming support, with 98.67 per cent of minority shareholders voting in favour of the new offer. The buyout, spearheaded by FMN’s majority shareholder, Excelsior Shipping Company (ESC) will see the acquisition of the remaining 37 per cent minority stake in FMN under a ‘Scheme of Arrangement.’ The company revealed that ECS sought to address concerns raised by minority shareholders, who pushed for a more favourable valuation.
FMN in a notice filed on the Nigerian Exchange Limited (NGX) noted that “That as consideration for the transfer of the scheme shares, each shareholder shall receive N86 (Eighty Six Naira) per share for the shares transferred. The legal and beneficial ownership of the Scheme Shares (as defined in the Scheme Document) be transferred to ECS Limited and its wholly owned Nigerian subsidiary, Greywise Investment Solutions Limited without further act or deed.”
Addressing fears that the buyout might signal FMN’s exit from Nigeria, Chairman John G. Coumantaros reassured stakeholders of the company’s unwavering commitment to the country. In his words, “FMN will not leave Nigeria. FMN and Nigeria are inextricably bound together, with Nigeria positioned as the headquarters of our pan-African growth story and the centre of excellence as we deepen investment in our different verticals.” He also highlighted the legacy of FMN’s founder, George S. Coumantaros, who established the company in the 1960s and its evolution into a leading agro-allied group with 22 subsidiaries.
This is even as he reiterated that FMN remains committed to supporting Nigeria’s economy.
The Company had outlined plans for a $1 billion investment over the next four years, aimed at expanding its footprint across Africa. This initiative leverages opportunities presented by the African Continental Free Trade Agreement (AfCFTA) and is expected to enhance FMN’s export capabilities, boost Nigeria’s foreign exchange earnings, and create economic value across the continent.
Coumantaros added that with the completion of the buyout, FMN reinforces its position as a key contributor to Nigeria’s economy, particularly in areas of food security, job creation, and industrial development. “The company’s proactive approach to addressing shareholder concerns and its ambitious growth agenda reflect its enduring commitment to both stakeholders and national development.”