Successful completion of the Flour Mills of Nigeria PLC N39.9BN Rights Issue

Flour Mills of Nigeria Plc (“Flour Mills” or “FMN”) is pleased to announce the results of its N39.9 billion Rights Issue of 1,476,142,418 ordinary shares of 50 kobo each at N27.00 per share on the basis of 9 new shares for every 16 shares held as at 08 December 2017, which was launched on 15 January 2018.

The Rights Issue, which is the first and only share issuance under Flour Mills’ N40 billion Rights Issue Programme, was well received by the Company’s broad retail and institutional shareholder base, with a subscription level of 111%.
Commenting on the success of the Rights Issue, Paul Gbededo, the Group Managing Director of Flour Mills, stated that the strong appetite exhibited by shareholders in the Rights Issue was a strong vote of confidence in the Company. “The Rights Issue is aimed at strengthening our balance sheet and positioning the Company for sustainable growth. We value the strong level of support shown by our shareholders and our focus remains on growing and building long-term value for all stakeholders”.

Flour Mills of Nigeria will use the proceeds from the Rights Issue to settle part of its outstanding overdraft and short term debt obligations. The significant investor demand demonstrates the strength of the Flour Mills’ brand, thriving shareholder goodwill and robust access to the equity capital market.
The newly issued shares are currently in the process of being listed on The Nigerian Stock Exchange, and trading of the shares will commence shortly thereafter.

Stanbic IBTC Capital Limited acted as the Lead Issuing House whilst FBNQuest Merchant Bank Limited and Zenith Capital Limited acted as Joint Issuing Houses to the Rights Issue.

About Flour Mills Nigeria PLC
Flour Mills of Nigeria Plc was incorporated on 29 September 1960 as a private limited liability company and commenced operations in 1962 with an installed flour milling capacity of 500 metric tonnes per day. In 1978, Flour Mills of Nigeria was converted to a public limited liability company and its shares were subsequently listed on The Nigerian Stock Exchange. Today, Flour Mills of Nigeria is the largest flour milling company in Nigeria, with an installed flour milling capacity of approximately 2.9 million metric tonnes per annum.

In 2012, Flour Mills of Nigeria commenced the implementation of backward integration programs through its agro-allied business initiatives, primarily to support its core food business. The Company has continued to pursue strategic business opportunities, such as capacity expansion and realignment of its core food business, whilst backwardly integrating its processes by increasing local content in a substantive and sustainable way, in order to further mitigate reliance on imports and exposure to external volatility in the food business.

Flour Mills of Nigeria remains Nigeria’s largest and oldest food and agro allied company, with a broad product portfolio and a robust pan-Nigerian distribution network. The Company’s three major business segments are constantly evolving to meet the diverse needs of all stakeholders.

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Successful completion of the Flour Mills of Nigeria PLC N39.9BN Rights Issue (126.31KB)