By Dipo Olowookere
The Nigerian Exchange (NGX) Limited has authorised the purchase of a 76.75 per cent stake in Honeywell Flour Plc by Flour Mills of Nigeria Plc.
Flour Mills had announced last year that it was planning to take charge of affairs of its rival in the flour milling industry in the country subject to regulatory approvals.
In a document from the exchange, Business Post gathered that Flour Mills now has the authorisation to own the 6,086,381,574 ordinary shares of 50 kobo each of Honeywell Flours held by Siloam Global Services Limited; Metropolitan Trust Nigeria Limited; Zion Trucks Limited; and Truthon Limited.
The flour miller is acquiring these equities through its subsidiaries and affiliate; Ecowise Horizon Investment Limited and Greywise Investment Solutions Limited.
While Honeywell Group Limited has a 71.69 per cent equity stake in Honeywell Flour, FBN Holdings controls 5.06 per cent in the milling firm.
The approval for the transactions, according to the regulatory disclosure, was obtained on March 28, 2022, after its stockbrokers, Chapel Hill Denham Securities Limited; and CardinalStones Securities Limited had filed an application for the authorisation. The issuing house/financial adviser for the deal is Chapel Hill Denham Advisory Limited.
In a statement issued last November, Flour Mills had assured that customers across the nation will benefit from access to a wider product range and a robust pan-Nigerian distribution network as well as a greater number of points of sale supported by enhanced customer-focused sales teams and redistribution capabilities.
It also stated that the deal will lead to the creation of more jobs in the economy and produce “more career development opportunities in a larger organisation.”
Flour Mills explained that the acquisition will combine two businesses with shared goals and create a more resilient national champion in the Nigerian foods industry, ensuring long-term job creation and preservation.
“A combination of FMN and HFMP will bring together two trusted and iconic brands, creating a food business that is better positioned to benefit the growing Nigerian population and leverage opportunities stemming from the African Continental Free Trade Area (AfCFTA),” it said.
