Shareholders of Flour Mills of Nigeria have given their approval for the separation of the BAGCO business into a 100% owned subsidiary during the company’s Annual General Meeting in Lagos.

The decision, passed by a show of hands, reflects the shareholders’ agreement to carve out BAGCO from Flour Mills of Nigeria, further divesting up to 60% equity of Flour Mills of Nigeria in BAGCO.

The corporate notice filed with the Nigerian Exchange Limited outlines the move, stating, “To carve out the business of BAGCO from that of Flour Mills of Nigeria into a 100% owned subsidiary of Flour Mills of Nigeria Plc.”

The Securities and Exchange Commission had previously approved the merger of BAGCO with Flour Mills of Nigeria in 2012.

The recent decision to create a subsidiary represents a strategic move in the company’s organizational structure.

Additionally, shareholders at the meeting approved the audited financial statement for the year ending March 31, 2023, along with a final dividend payment of N2.25 for every 50 Kobo ordinary shares held.

The re-election of several directors, including Muhammad Ahmad, Juliet Anammah, Paul Gbedebo, Yunus Saliu, and Folarin Williams, was also endorsed.

Despite a positive revenue outlook, an investment update from Cordros Securities cautioned that Flour Mills’ profitability might be impacted by the anticipated high cost of operations and foreign exchange challenges resulting from the devaluation of the naira.

The report highlighted the potential inhibiting factors, including a higher cost outlook in H2-24 and sustained FX losses impacting net operating income.

The United Bank for Africa (UBA) Plc has seized the assets of Stallion Nigeria Limited and its subsidiaries in Lagos, Port Harcourt, and Kano, following a Federal High Court order in Lagos in a debt lawsuit totaling N156,026,032,804.84.

The bank’s receiver-manager, Romeo Michael, executed the court order, protected by police personnel, in the three cities.

The court order, issued by Justice Akintayo Aluko on October 20, 2023, grants UBA control over the assets and restrains the defendants, including their directors, shareholders, employees, officers, and agents, from interfering with the receiver-manager’s duties.

The affected assets include properties in Port Harcourt, Lagos, and Kano, and the court has also frozen sums totaling N156 billion across various financial institutions.

Speaking on the development, the judge emphasized the importance of preserving the subject matter of the suit and issued an interim injunction against tampering with or dealing in any manner with the assets and monies subject to the order.

The court further scheduled a hearing for November 20, 2023, to consider the motion on notice.

According to court documents, UBA provided credit facilities to Stallion Nigeria Limited in 2014, with the understanding that the funds would be used by Stallion’s sister companies.

The defendants allegedly diverted funds, breached agreements, and failed to clear their debts amounting to N156 billion.

The legal action underscores the bank’s efforts to recover outstanding amounts and protect its interests in the face of contractual violations.