Flour Mills of Nigeria Plc undertakes N39.9bn Rights Issue

Lagos, Nigeria; 05 January 2018. Following the receipt of shareholders’ approval in May 2015 to raise additional capital via a Rights Issue, Flour Mills of Nigeria PLC (“the Company” or “Flour Mills of Nigeria” or “FMN”) has now received clearance of the issue documents from the Securities and Exchange Commission and The Nigerian Stock Exchange to proceed with Series 1 of the Rights Issue Programme. This Programme enables the Company to raise funds in several tranches over a three-year period. The Rights Issue is being undertaken as part of the long-term plan to strategically position FMN for sustainable growth.

The Company now intends to raise N39,855,845,286.00 by way of rights to existing shareholders, on the basis of 9 new shares for every 16 shares held by shareholders, whose names appeared in the register of members of the Company as at 08 December 2017 at an issue price of N27.00 per share. The Issue price of N27.00 represents a discount of 23% to the Company’s closing share price on the date of announcement.

At the Signing Ceremony which held in Lagos, on 05 January 2018, Mr Paul Gbededo, the Group Managing Director of Flour Mills of Nigeria, commented “The Rights Issue is part of our strategy to grow and build long-term value for all stakeholders. The proceeds from the Rights Issue will be used to strengthen the Company’s capital base by deleveraging our balance sheet, supporting our working capital needs and positioning the Company to exploit value-accretive opportunities, whilst giving greater operational and financial flexibility to ensure business growth and continuity.”

FMN has a long and rich history in Nigeria and continues to evolve into becoming the leading food and agro-allied group on the continent. FMN’s commitment to sustainability as a corporate strategy is shown in different levels of its operations and activities, while the Company’s customer-centric culture remains focused on both product and process innovation aimed at building value for all stakeholders.

Full terms of the Rights Issue will be set out in a Rights Circular to be mailed directly to shareholders of the Company, which contains a Provisional Allotment Letter and the Participation Form.

Please read the Rights Circular and where in doubt, consult your Stockbroker, Fund/Portfolio Manager, Accountant, Banker, Solicitor, or any other professional adviser for guidance before subscribing.

Stanbic IBTC Capital Limited is acting as Lead Issuing House, while FBNQuest Merchant Bank Limited and Zenith Capital Limited are acting as Joint Issuing Houses to the Rights Issue.

About Flour Mills of Nigeria Plc
Flour Mills of Nigeria Plc. (FMN) Group, is the market leader in food and agro-allied products in Nigeria, today. The Group is a fully vertically integrated foods company that primarily engages in flour milling, and food processing – Our flagship food brand, “Golden Penny,” is a staple in Nigerian homes, providing nourishment for millions of Families, every day. Our foods portfolio covers wheat-based products like Semovita, Masavita, Pasta, Noodles, and complementary foods like Vegetable oils, Margarine & Spreads, refined sugar, breakfast cereals and snacks.

Outside of foods, the FMN Group has made strategic investments in several agro-allied ventures, and support services that include several large-scale farms and support services like, polypropylene sack manufacturing, transportation, port operations and shipping.

With over twelve thousand full and part-time employees, Flour Mills is at the forefront of the green revolution in Nigeria with the use of locally sourced materials to develop and produce unique consumer products for local markets. This strategy is reducing dependence on imported raw materials, generating foreign exchange savings and creating value for businesses, consumers and the country at large.

PDF Press release:

Flour Mills of Nigeria Plc undertakes N39.9bn Rights Issue (68.75KB)