Shareholders of Flour Mills Nigeria Plc on Wednesday March 6, 2019, at a Court Ordered Meeting in Lagos, approved the board of directors’ request to restructure the company business. With the shareholders’ approval, Golden Fertilizer Company Limited will be spun off from Flour Mills Nigeria Plc. Parts of the restructuring is that the agro allied related subsidiaries will be transferred to Golden Fertilizer Company, such that it emerges as the holding company for the agro allied business value chain.
According to the Managing Director of Flour Mills of Nigeria Plc, Mr Paul Gbededo, who chaired the meeting, explained to shareholders that the restructuring will enable each of the business value chain in Flour Mills Group to target appropriate investors, market and attracted to the specific businesses.
Gbededo said the initiative will increase the capital allocation capacity and flexibility of Flour Mills Group, as each business value chain will be able to attract new capital targeted at the specific opportunities of the respective businesses. He noted that the restructuring will also allow each business value chain to focus on its core market and effectively grow market share, create a platform to potentially unlock value.
Pointing out that it will allow for uniformity and ease of comparison with competitors’ respective sectors. “that this will lead to a better understanding of the independent and related groups by analyst and investors, therefore ensuring better value ascribed to the businesses and ensure shareholders value maximization because of a more effective and efficient utilization of resources”.
At the close of business on Wednesday, the company share price was still selling at N19.95 kobo. 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 N1 million 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 percent of the company’s paid-up share capital. The balance is held by over 75,000 individuals and institutional investors.