Flour Mills Divests from Unicem
The Company (Flour Mills of Nigeria Plc) has notified The Exchange of the sale of its 30% minority equity investment in Unicem.
According to the Company, the transaction, comprising the sale of shares and the repayment of loans is structured in two tranches – with first tranche payable during first quarter 2015 and the second tranche due no later than 29th February, 2016 – and will generate a total net cash inflow into the operations of Flour Mills ranging between 47billion and 55billion Naira in the next 15 months.
The sale of FMN’s 30% minority stake in Unicem generates a positive returns on capital employed and is accretive to Shareholder value the Company said.
FMN’s exit from the cement sector solidifies the Company’s strategy of divesting non-core, non- operating assets and focusing resources for the expansion and growth of its principal branded consumer and wholesale food and integrated agro-allied operating businesses