Flour Mills of Nigeria Plc (NGX: FLOURMILL) is to carve out of the business of BAGCO into a 100% owned subsidiary.
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The plan Is contained in the notice of Annual General Meeting published by the company on Wednesday.
At its 63rd Annual General Meeting to be held on 9th November, 2023, shareholders will be asked to approve a special resolution to carve out the business of BAGCO from that of Flour Mills into a 100% owned subsidiary.
If approval is given, the shareholders will then be asked to approve the divestment of 60% equity of Flour Mills of Nigeria Plc in BAGCO.
BAGCO Division of FMN Plc is a provider of Total Packaging Solutions and consists of three plants: Bagco Lagos, Bagco North and Bagco Morpack.
The Securities and Exchange Commission (SEC) had in 2012 given approval to the business combination involving Flour Mills and Nigerian Bag Manufacturing Company Plc (BAGCO) and its subsidiaries.
The scheme of the merger resulted in the transfer of all assets, liabilities and undertakings of BAGCO and its subsidiaries, while the entire issued share capital of BAGCO were cancelled.
Consequently, Flour Mills became the surviving entity at the end of the merger process, while BAGCO was dissolved without winding up.
Flour Mills at that time stated that the respective board of directors of both companies agreed that shareholders of BAGCO will get one ordinary share of Flour Mills in exchange for 25 ordinary shares they previously held in BAGCO or “or a cash consideration of N2.75 for each ordinary share of Bagco as at the Effective Date.”
Nigerian Bag Manufacturing Company Plc (BAGCO) subsequently delisted from The Nigerian Exchange on 11 April, 2013, following the completion of the merger with Flour Mills of Nigeria Plc.
Nigerian Bag Manufacturing Company Plc (BAGCO) was incorporated in 1964.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
