NIGERIA – Flour Mills of Nigeria Plc (FMN), one of Nigeria’s largest food and agro-allied companies, has announced plans to buy out its minority shareholders after receiving regulatory approvals.
This development is part of FMN’s broader strategy to streamline its ownership structure and enhance its agility in the marketplace, reinforcing its position as a leading player in Africa’s food industry.
FMN, which disclosed the buyout plan on September 24, revealed that its majority shareholder would formally propose the buyout offer to minority shareholders.
The transaction will be carried out through a “scheme of arrangement” with approvals from the Nigerian Exchange Limited (NGX) and the Securities and Exchange Commission (SEC) already secured.
This move, according to the company, aligns with FMN’s long-term vision of becoming a more sustainable, resilient, and dynamic pan-African food business.
Boye Olusanya, FMN’s Group Managing Director, explained that the buyout is a crucial part of FMN’s ten-year strategic roadmap. This roadmap aims to build a company adaptable to changing market dynamics while focusing on quality and consumer trust.
“In line with FMN’s ambition to become the leading Pan-African food business that feeds and enriches lives of its consumers every day with quality brands, this move aligns with our strategy aimed at positioning the company to achieve its ten-year vision of building a company that is sustainable, resilient, dynamic, and adaptable in its people, systems, and structures,” Olusanya stated.
The proposed buyout is designed to increase FMN’s management efficiency, decision-making capabilities, and investment attraction by allowing the company to operate with more agility.
By consolidating its ownership structure, FMN will be better positioned to implement key decisions faster, driving innovation and long-term value creation for both the company and its stakeholders.
Regulatory approvals and next steps
With the NGX and SEC’s approval in place, FMN has begun notifying its shareholders of the proposal. The next step in the process involves filing an application with the Federal High Court to convene a shareholder meeting.
During this Court-Ordered Meeting (COM), the resolution to buy out minority shareholders will be presented. For the resolution to pass, it must secure the support of at least 75% of shareholders present and voting either in person or by proxy.
FMN’s board of directors has already endorsed the offer, emphasizing the potential benefits of the buyout for shareholders.
If approved, the company will achieve greater alignment of its subsidiaries and resources, ultimately bolstering FMN’s capacity to grow and innovate in the highly competitive food and agro-allied sector.
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