First Bank divests from Honeywell, FMN grabs equity

By Dele Ojo

Flour Mills of Nigeria Plc has entered into an agreement with First Bank of Nigeria Limited to acquire the Bank’s 5.06% equity interest in Honeywell Flour Mills Plc, in addition to the 71.69% majority shareholding interest in Honeywell Flour Mills, (HFMP). Consequently, upon completion of the acquisition, and subject to obtaining all requisite regulatory approvals, Flour Mills of Nigeria is set to hold a cumulative 76.75% equity interest in HFMP.

Molu Joseph, Company Secretary/Director, Legal Services, FMN, related the unfolding development in a message to The Nigerian Exchange at the weekend, explaining that “Further details will be communicated to the market upon relevant approvals from regulators”.

According to the company, given FMN’s parallel negotiations for both stakes culminating in the agreements being signed on the same date, the basis for arriving at key commercial terms including final equity price per share, will be the same. The price payable to FirstBank will be the same as HGL’s.

Commenting on the transaction, Omoboyede Olusanya, Group Managing Director of FMN, said: “The proposed transaction is part of our global growth strategy; which is aligned with our vision to not only be an industry leader but also, a national champion for Nigeria in the Food and Agro-allied industries.”


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