Flour Mills to acquire First Bank’s equity in Honeywell

Following the agreement between Flour Mills of Nigeria Plc (FMN) and Honeywell Group Limited, the majority shareholder of Honeywell Flour Mills Plc (HFMP) to acquire a 71.69% majority shareholding interest in the latter, FMN has sealed a deal with First Bank of Nigeria Limited to acquire the Bank’s 5.06% equity in HFMP.

Consequently, upon completion of the acquisition, and subject to obtaining all requisite regulatory approvals, FMN is set to hold a circa 76.75% equity interest in HFMP.

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 with HGL’s.

With the new development, shareholders and potential investors are advised to exercise caution when dealing in FMN’s shares until a further announcement is made.

The firm noted that further details will be communicated to the market upon obtaining relevant regulatory approvals from the regulators.

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.”