Flour Mills leverages share acquisition to expand pan-African footprint

Flour Mills of Nigeria (FMN) Plc said its share acquisition is part of its plan to transition into a leader in the continent and properly align its long-term growth strategy.

The share acquisition plan, which involves purchasing minority shares, will help FMN to streamline its operations, focus on its core strengths and pursue growth opportunities across the continent more quickly.

The leadership of FMN, one of Nigeria’s oldest and most significant players in the food and agro-allied sectors, has described the move as a critical step towards becoming a pan-African food leader.

The firm aims to leverage its ability to unlock value and grow its presence across Africa while contributing to Nigeria’s economic prosperity.

The firm, in a statement, said: “FMN has been a staple of Nigeria’s economy for 64 years, growing from a single flour milling company into a diverse group spanning food production, agriculture, logistics and more.

“However, the conglomerate structure, while effective in past decades, is now seen as limiting the company’s ability to fully capitalise on the opportunities presented by Africa’s growing markets.”

According to FMN, the timing of the restructuring is not coincidental, as Nigeria is undergoing significant reforms under its current administration.

These reforms, aimed at diversifying the economy, are creating opportunities for companies like FMN to play a more prominent role in the nation’s food security and economic development, it said.

Chairman, FMN Board, John Coumantaros, said by leveraging its long-standing expertise in food production and supply chain management, FMN aims to become a key player in addressing the region’s food security challenges and also capitalises on broader regional growth opportunities, starting with West Africa.

“We are committed to the growth of Nigeria, a mandate we have fostered for over six decades. Also, in line with the Group’s Pan-African Vision this positions us to make more meaningful contributions to Nigeria’s economic growth and progressively across the continent.

“Minority shareholders, meanwhile, are being offered a significant premium on their shares, allowing them to unlock substantial value. The offer reflects the company’s commitment to fair, transparent corporate governance and commitment to effective stakeholders’ relations,” he said.