Flour Mills launches N39.9bn rights issue

Nigeria’s largest flour-milling company and food conglomerate, Flour Mills of Nigeria Plc will today (Monday January 15, 2015) open application list for its N39.9 billion rights issue.

Flour Mills of Nigeria is raising N39.85 billion through a rights issue of 1.476 billion ordinary shares of 50 kobo each at N27 per share. The rights have been pre-allotted to shareholders on the basis of nine new ordinary shares of 50 kobo each for every 16 ordinary shares of 50 kobo each held as at Friday December 8, 2017.

Application list for the rights, which opens today, will close on Wednesday February 21, 2018.

Group Managing Director, Flour Mills of Nigeria Plc, Mr. Paul Gbedebo said the net proceeds from the new capital raising would be used to strengthen the company’s capital base by deleveraging its balance sheet, supporting its working capital base and positioning the company to exploit value-accretive opportunities.

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He added that the additional capital would give the group greater operational and financial flexibility to ensure business growth and continuity.

Flour Mills of Nigeria had recently increased its majority equity stake in Rom Oil Mills Limited from 90 per cent to 95 per cent. With the increase, the Shahimi family now collectively owns five per cent minority stake in the Ibadan, Oyo State-based oil mill. Flour Mills had in November 2014 announced the commissioning of the most modern fully automated edible oil refinery and margarine plant built in Sub Sahara Africa by ROM Oil Mills Limited.

The group had in 2012 acquired majority controlling interest in Thai Farm International Limited, which began operations in 2010, grows and processes cassava in Ososa, Ogun State.

Flour Mills had earlier in 2009 acquired a 51 per cent majority equity stake in Eagle Flour Mills, which then had a capacity of 850 tonnes per day.

 

 

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