The Nigerian Exchange has informed investors and the public that the entire issued share capital of Flour Mills of Nigeria has been delisted from the Daily Official List of the NGX.
This announcement follows an earlier bulletin issued by the exchange on December 16, 2024, which informed the public about the suspension of trading in the company’s shares.
According to the notification, the suspension was a preparatory step for the delisting of Flour Mills from the exchange.
In light of this, the NGX announced in its first weekly market report for 2025 that Flour Mills of Nigeria’s shares had been delisted from the exchange’s Daily Official List, effective December 30, 2024.
According to a statement in the NGX weekly market report:
“We refer to our market bulletin of December 16, 2024, with reference number: NGXREG/IRD/MB93/24/12/16, wherein the market was notified of the suspension placed on trading in the securities of Flour Mills of Nigeria Plc (the Company) in preparation for the delisting of the Company.”
The statement further confirmed:
“Following the approval of the Company’s application to delist its entire issued share capital from Nigerian Exchange Limited (NGX), please be informed that the entire issued share capital of Flour Mills of Nigeria was, on Monday, December 30, 2024, delisted from the Daily Official List of NGX.”
Backstory
On September 24, 2024, Flour Mills of Nigeria Plc announced a proposal by its majority shareholder, Excelsior Shipping Company Limited, to acquire all shares held by minority shareholders.
- This decision, aimed at consolidating ownership, would result in the company’s delisting from the Nigerian Exchange (NGX).
- The acquisition had already received a “no objection” ruling from the Securities and Exchange Commission (SEC) prior to the announcement, fulfilling a key regulatory requirement.
The plan, outlined under Section 715 of the Companies and Allied Matters Act (CAMA) 2020, mandated that any outstanding shares not owned by Excelsior Shipping Company Limited would be transferred to the majority shareholder.
A court order clarified:
“The legal and beneficial ownership of the scheme shares (as defined in the scheme document) shall be transferred to Excelsior Shipping Company Limited and its wholly owned Nigerian subsidiary, Greywise Investment Solutions Limited, without further act or deed.”
At a court-ordered meeting held on November 14, 2024, shareholders approved the proposal. The following day, Flour Mills of Nigeria formally announced the outcome in a disclosure to the NGX.
What to know
- Ownership of the scheme shares will be transferred to Excelsior Shipping Company Limited and its subsidiary Greywise Investment Solutions Limited.
- Holders of the scheme shares will receive 86 Naira per share as compensation for the transfer.
- The company’s delisting from the Nigerian Exchange will result in the dematerialization of all related share certificates.
- The board of directors is authorized to take necessary actions and approve any modifications required by the Federal High Court or the Securities and Exchange Commission.
Shares of the company last traded on December 13, 2024, closing at N81.80 with a monthly market volume of 11 million shares and a year-to-date performance of 147.50%.
