Investment Business - News - January 2, 2022

Flour Mills announces acquisition of majority stake in Honeywell Flour

MEDIATRACNET

To realize its aspiration to become Nigeria’s leading foods and agro-allied industry operator, Flour Mills of Nigeria PLC on December 31, 2021, announced an agreement with Honeywell Group Limited to acquire a 71.69 percent majority shareholding interest in Honeywell Flour Mills PLC.

Honeywell Group is the majority shareholder in Honeywell Flour Mills PLC.
In addition, Flour Mills Nigeria said it has also entered an agreement with First Bank of Nigeria to acquire its 5.06 percent equity in Honeywell Flour Mills PLC.

Although the two transactions are still subject to the standard regulatory approvals by the relevant regulatory authorities in the capital market, Flour Mills Nigeria said upon completion of the acquisition processes, its equity shareholding in Honeywell Flour Mills PLC would increase to 76.75 percent.

“Given FMN’s parallel negotiations for both stakes culminating in the agreements being signed on the same date, the basis for arriving at key commercial terms, including final equity price per share, will be the same,” the company said in a corporate filing with the Nigerian Exchange Group signed by the Company Secretary/Director, Legal Services, Joseph Umolu.

Umolu said the price of the shares payable to First Bank would be the same as Honeywell Group Limited’s.
The Group Managing Director of Flour Mills Nigeria, Omoboyede Olusanya, said the proposed acquisition of the shares of Honeywell Flour Mills has been part of the company’s global growth strategy, which aligns with its vision to “not only be an industry leader, but also a natural champion for Nigeria in the food and agro-allied industries.”

Flour Mills Nigeria is one of Nigeria’s leading foods and agro-allied industries operators devoted to feeding the nation, while actively investing in attaining Nigeria’s food sufficiency goals.

Since 1960, Flour Mills, through its iconic Golden Penny brand of flour, pasta, semolina, sugar, starch, oil spreads, and breakfast cereals, has continued to build a diversified portfolio of accessible wholesome food products chain as a robust pan-Nigerian distribution network and investments that enhance the lives of Nigerians today and the future.

Umolu said The Flour Mills Group operates 17 modern and best-in-class manufacturing facilities across 12 states with production capabilities across grain milling, edible oil and sugar refining, agro-inputs, and animal nutrition and proteins, in addition to its logistics and distribution, packaging and port operation services which are considered among Nigeria’s best in class.

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