- Flour Mills of Nigeria plc (FMN) has announced plans to conduct a restructuring by merging five of its subsidiaries with its holding company under a Scheme of External Restructuring.
- Paul Miyonmide Gbededo, Group Managing Director, FMN, said the company had obtained the approval-in-principle of the Securities and Exchange Commission (SEC) to merge five of its wholly-owned subsidiaries, Golden Noodles Nigeria Limited, Golden Transport Company Limited, FMN Cement Industries (Nigeria) Limited, New Horizon Flour Mills Limited, and Quilvest Properties Limited, with Flour Mills of Nigeria plc.
- According to Gbededo, the principal reason for the restructuring is the need to streamline operations, reduce administrative costs, improve operating efficiency and derive full benefits of synergy in line with the company’s long-term strategic thrust.
“The enlarged FMN, upon completion of the restructuring, would be able to eliminate transfer costs of materials and operate at a higher level of efficiency which will drive down costs, make product pricing more competitive, improve profitability and enhance the bottom line for the benefit of all stakeholders,” he said.
Source: Thisday