By Aduragbemi Omiyale
The board of Flour Mills of Nigeria has been authorised to create a bagging subsidiary, BAGCO, which it acquired some years ago.
Business Post reports that, in 2012, the Securities and Exchange Commission (SEC) approved the merger between Flour Mills and the Nigerian Bag Manufacturing Company (BAGCO) Plc.
Shareholders of BAGCO, which dissolved into the flour milling firm, were given one ordinary share of Flour Mills in exchange for 25 ordinary shares of BAGCO or N2.75 for each ordinary share of BAGCO if they opted for cash instead of Flour Mills equities.
After the transaction, BAGCO delisted its shares from the Nigerian Exchange (NGX) Limited, then known as the Nigerian Stock Exchange (NSE), on Thursday, April 11, 2013.
The new business entity remained a part of Flour Mills, but the board wants the business to stand out as a subsidiary to be 100 per cent owned by the miller.
To make this possible, the board of Flour Mills sought approval of the company’s shareholders at the Annual General Meeting (AGM) held on Thursday, November 9, 2023, in Lagos.
At the gathering, the organisation’s investors said the board could go ahead with the creation of BAGCO as a business arm of the company.
It was also gathered that during the meeting, the board was authorised to divest up to 60 equity of Flour Mills of Nigeria in BAGCO.
