FMN to Begin N39.86bn Share Sale on Monday

• FMN to Begin N39.86bn Share Sale on Monday

Flour Mills of Nigeria Plc plans to start marketing a share sale to existing investors aimed at raising N39.86bn ($130m) on January 15, 2018, the Nigerian Stock Exchnage said on Thursday, after granting approval.

The flour and pasta maker will offer 1.47 billion shares at N27 apiece, an 18.2 per cent discount to Thursday’s market price of N33. It will offer nine new shares for every 16 already held via the rights issue.

Flour Mills shares which climbed 57 per cent last year, has gained 15 per cent so far in January valuing the company at N87bn ($284m. However, they shed 1.2 per cent on Thursday. The offer ends on February 21, 2018.

The Group Managing Director, FMN, Mr. Paul Gbededo, recently said, “The right 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, while giving greater operational and financial flexibility to ensure business growth and continuity.”

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.

The FMN GMD said the company has a long and rich history in Nigeria and has continued to evolve into becoming the leading food and agro-allied group on the continent, adding that its commitment to sustainability as a corporate strategy was evident in different levels of the company’s operations and activities.

He added, “The company’s customer-centric culture remains focused on both product and process innovation aimed at building value for all stakeholders.”