The Nigerian Stock Exchange (NSE) and Securities Exchange Commission (SEC) have given clearance to Flour Mills of Nigeria (FMN) to proceed with series 1 of its Right Issue Programme.
This programme is intended to help the Company raise funds in several tranches over a three-year period.The Rights Issue is being undertaking as part of the long-term plan to strategically position FMN for sustainable growth.
How this fund will be raised
The company intends to raise N39,855,845,286.00 by way of Rights to existing shareholders, on a basis of 9 share for existing for 16 shares held by the shareholders, whose names appear in the register of members of company as at 08 December,2017 at an issue price of N27.00 per share.
At the signing ceremony held in Lagos, Mr. Paul Gbadebo, Group Managing Director, Flour Mills of Nigeria said,
“The Right Issue is part of our strategy to grow and build long-term value for all stakeholders. The proceeds from the Right Issue will be used to strengthen the company’s capital base by deleveraging our balance sheets,supporting our working capital needs and positioning the company to exploit value-accretive opportunities,whilst giving greater operational and financial flexibility to ensure business growth and continuity.”
The full terms of the Right Issue will be set out in a Rights Circular to be mailed directly to shareholders of the company,which contains a provisional allotment letter and participation form.
Flour Mills of Nigeria Plc (FMN) was incorporated on 29th September, 1960 as a private limited liability company with a modest paid-up share capital of N1million and converted to a public company in November, 1978. The beneficial interest in the company’s equity is held by Nigerian and Overseas shareholders. Presently, two foreign shareholders own about 56% of the company’s paid-up share capital. The balance is held by over 75,000 individuals and institutional investors.
FMN’s first investment outside Flour Milling was in BAGCO in 1978. BAGCO now a Division of FMN is a pace setter in woven polypropylene sack manufacturing. With its two giant plants at Lagos and Kano, it is by far the largest and supplier of choice to many industrial and agro-allied companies in Nigeria in the packaging of flour, cement, grains, salt, detergent, fertilizer, merchandise, farm harvests, shopping, etc.