Flour Mills of Nigeria to Raise N200bn, Cancel 899.6mn Shares
Food producer, Flour Mills of Nigeria (FMN) Plc, has obtained shareholders’ approval to raise up to N200 billion amidst a plan to reorganise the company’s businesses and cancel about 900 million unissued shares.
The group’s shareholders’ decision to raise capital came after a successful acquisition of Honeywell Flour Mills. The acquisition, according to analysts, will boost the company’s capacity and enhance its market share.
In its latest regulatory filing, the company told the investing public and the Nigerian Exchange that shareholders have agreed to separate all the manufacturing businesses of the Company. READ: Flour Mills of Nigeria CEO Seeks to Rally Shareholders Wealth
The Nigerian food producer also obtained approval to remove and or separate its power assets. Flour Mills declared and obtained approval to pay N2.15 kobo for every 50 Kobo ordinary share, payable to all shareholders as dividends.
In order to balance the size of the group’s capital structure amidst fresh capital raise, the board also obtained approval to cancel 899,604,394 units of unissued ordinary shares. Effectively, this will reduce share capital.
In the financial year ended March 31 2022, Flour Mills’ revenue hits N1.2 billion for an increase of 51 per cent compared with N771.6 million recorded in March 2021, officials said at the 62nd Annual General Meeting (AGM) in Lagos.
Also, the group said the acquisition of Honeywell Flour Mills Plc within the fiscal year. Resolutions made at the meeting include the shareholders’ approval of the payment of N2.15 dividend for the 2022 fiscal year.
In its first quarter unaudited results for the period ended 30 June 2022, sales increased by 45.3 per cent to N339.601 billion from N233.703 billion in 2021.
MarketForces Africa that companies may from time to time in general meetings cancel shares that, at the date of the passing of the resolution, have not been taken or agreed to be taken by any person, and diminish the amount of its share capital by the amount of the shares so cancelled.# Flour Mills to Raise N200bn, Cancel 899.6mn Shares