Flour Mills of Nigeria Plc (NGX: FLOURMILL) has announced to Nigerian Exchange Limited that it has obtained the approval of the Securities & Exchange Commission to launch a Mandatory Takeover Bid (MTO) to Shareholders of Honeywell Flour Mills Plc (NGX: HONYFLOUR).
This is according to a corporate action release by both FLOURMILL and HONYFLOUR. The document stated that the MTO will be made to shareholders of Honeywell by Ecowise Horizon Investment Limited and Greywise Investment Solution Limited.
In mergers and acquisitions, a mandatory offer, also called a mandatory bid in some jurisdictions, is an offer made by one company (the “acquiring company” or “bidder”) to purchase some or all outstanding shares of another company (the “target”), as required by securities laws and regulations or stock exchange rules governing corporate takeovers.
Ecowise and Greywise will make an offer to Honeywell Shareholders, on behalf of Flourmills for 79,301,976 Ordinary Shares of 50 kbo each in the Company – representing 1% of the total shareholding of Honeywell Flour Mills Plc.
Ecowise and Greywise hold an aggregate of 6,086,381,574 Ordinary Shares, 76.75% of Honeywell Flour Mills Plc’s shareholding in Honeywell.
In April 2022, Flourmills completed the acquisition of Honeywell when a negotiated deal was done between Chapel Hill Denham Securities Ltd as buyer with Cardinalstone securities, Rencap Securities (Nig.) Ltd (RSNL), Regency Asset Management and FBNQuest Securities as the Sellers to exchange a total of 6,086,381,574 units of HONYFLOUR were exchanged in an off market trade at N4.20 on Friday, 29th April 2022.
About Flour Mills of Nigeria Plc
Flour Mills of Nigeria Plc was incorporated in Nigeria as a private limited liability Company on 29 September 1960 and was converted to a public liability company in November 1978.
Over the years, the FMN brand grew tremendously from operating as a single business, flour miller, to a vast business group with strategic investments that cover key sectors of the Nigerian economy.
The group’s operations can be categorized into four major sectors of Food, Sugar, Agro-allied, and Support services.
It is primarily engaged in flour milling, production of pasta, noodles, edible oil and refined sugar, production of livestock feeds, farming and other agro-allied activities, distribution and sales of fertilizer, manufacturing and marketing of laminated woven polypropylene sacks and flexible packaging materials, development of real estate properties for rental, operation of terminals A and B at the Apapa Port, customs clearing, forwarding agents, shipping agents and logistics.
Its registered head office is located at 1 Golden Penny Place, Apapa Lagos.
FLOURMILL has 4.10 billion outstanding shares and a market capitalization of N135.72 billion.
About Honeywell Flour Mill Plc
Honeywell Flour Mills Plc was initially registered as Gateway Honeywell Flour Mills Limited on 21 June, 1983.
A change in the Company’s ownership structure led to a change of the name to Honeywell Flour Mills Limited in June 1995.
The company was converted to a Public Liability Company in 2008, and its shares were listed on the Nigerian Exchange in 2009.
The Company is principally involved in the manufacturing and marketing of wheat based products such as flour, semolina, whole wheat meal, noodles and pasta.
HONYWELL has 7.93 billion outstanding shares and a market capitalization of N29.34 billion.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur