NIGERIA – Flour Mills of Nigeria PLC (FMN), one of the oldest and most prominent players in Nigeria’s food and agro-allied industries, has announced a restructuring plan to transition the company’s structure.
This initiative aims to align FMN’s strategy with its long-term vision of becoming a Pan-African food leader.
At the heart of this transformation is a share acquisition plan, aimed at purchasing minority shares to streamline operations and enhance competitiveness across the continent.
With a 64-year legacy, FMN has evolved from a single flour milling business into a diverse conglomerate encompassing food production, agriculture, logistics, and more.
However, the company leadership now recognizes that its current structure is limiting its ability to fully capitalize on the opportunities presented by Africa’s rapidly expanding markets. The restructuring process is designed to unlock value, boost shareholder returns, and accelerate FMN’s growth across the region.
Strategic shift towards Pan-African leadership
As part of its restructuring plan, FMN is positioning itself to seize regional opportunities, starting with West Africa. This move aims to make FMN a key player in addressing the region’s food security challenges.
John G. Coumantaros, FMN’s Chairman, emphasized that the company remains committed to Nigeria’s economic growth, while pursuing a broader Pan-African vision.
“We are committed to the growth of Nigeria, a mandate we have fostered for over six decades. Also, in line with the Group’s Pan-African Vision, this positions us to make more meaningful contributions to Nigeria’s economic growth and progressively across the continent,” Coumantaros stated.
This restructuring comes at a critical time for Nigeria. The country is undergoing a series of economic reforms under its current administration, which aim to diversify the economy and reduce dependency on oil.
These reforms are creating significant opportunities for companies like FMN, enabling them to play a larger role in food security, job creation, and economic development.
Enhancing operational efficiency, shareholder value
The core of FMN’s restructuring strategy is its share acquisition plan, which focuses on buying back minority shares to simplify its operations and unlock greater value for shareholders.
The company has reassured stakeholders that this move will not affect its deep-rooted commitment to Nigeria’s economic prosperity.
FMN is offering a significant premium to minority shareholders, giving them a chance to unlock substantial value. The company’s transparent and fair corporate governance practices have been praised for fostering strong relations with stakeholders, enhancing trust in its long-term growth strategy.
A senior executive at FMN highlighted the importance of streamlining operations in today’s dynamic market environment.
“FMN is restructuring to unlock substantial value and enhance its competitiveness across Africa. This will allow us to focus on our core strengths and pursue growth opportunities more nimbly across the continent,” the executive said.
Concerns about potential changes in ownership control have been addressed by FMN leadership, who emphasize that the restructuring is designed to ensure long-term growth, not foreign ownership.
The company remains deeply anchored in its Nigerian roots, with a focus on enhancing operational efficiency and creating value for all stakeholders.
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