The outgoing GMD of Flour Mills of Nigeria Plc, Paul Miyonmide Gbedebo, has acquired 15,000 additional shares of the company at a price of N24.7 per unit.
This is according to a notification of insider dealing issued today, 23 December 2020 by the Company’s Secretary, Mr. Joseph Umolu, and seen by Nairametrics.
The acquisition of the shares of the company by the outgoing GMD comes 12 days after the Board of Directors of the leading integrated Food and Agro-allied group announced his retirement on the 3rd of December 2020.
What you should know
- Since Nairametrics reported three weeks ago, that Mr Gbededo purchased a total of 7,486,719 additional shares of the company worth N209.29 million in 3 days, he has acquired 612,326 additional shares of Flour Mills.
- This brings his acquisitions since our last report to 629,326 additional units. In line with this, his total shareholding now stands at 10,836,154 shares, worth N285.79 million at the current share price of N26.60.
- Mr. Omoboyede Olusanya, the new GMD/CEO appointed by the Board of the company, will take over from Mr. Paul Gbededo, who is retiring after 38 years of meritorious service to the Group, on the 1st January 2021.
Why this matters
- Dealings by insiders of listed companies are corporate actions to be disclosed, as required by the Nigerian Stock Exchange, which aids transparency.
- The purchase of the shares of Flour Mills Nigeria Plc further cements Mr. Paul Gbedebo’s position as one of its majority shareholders and shows his confidence in the prospects of the company in 2021 and beyond.
Though he has significant quantity of shares, that singular purchase was insignificant for report purposes.