The Securities and Exchange Commission (SEC) and the Nigerian Exchange Limited (NGX) have granted Flour Mills of Nigeria (FMN) the green light to buy out its minority shareholders. This approval follows a formal announcement by FMN, which stated that its majority shareholder has proposed to acquire the shares of minority shareholders.
The buyout process will occur through a scheme of arrangement that has received a “No Objection” from both the SEC and NGX. FMN indicated that this strategic decision will allow the majority shareholder to better align the company’s various entities, seeking necessary investments that align with the long-term vision of each unit, ultimately focusing on growth and value creation.
“This process is expected to improve management efficiency and decision-making, enabling the company to operate with greater agility,” the firm noted. A resolution recommending the buyout will be presented to shareholders for consideration, with plans to file an application in the Federal High Court to convene a shareholders’ meeting. For the resolution to pass, it must receive at least 75% approval from members present, whether in person or by proxy.
Boye Olusanya, the Group Managing Director of FMN, emphasized that this move aligns with the company’s goal to become a leading pan-African food business. He expressed commitment to building a sustainable, resilient, and adaptable organization over the next decade.
In addition to this significant development, FMN recently inaugurated a solar-powered clean water plant for the Gbaji-Yeke Community in Badagry, showcasing its commitment to sustainable growth and community development in Nigeria.