Honeywell Flour Mills Plc (NGX: HONYFLOUR) has assured stakeholders in the company that the recent Flour Mills of Nigeria Plc’s acquisition of majority stake in the company was made in compliance with all rules and regulations.
The company said the assurance is necessary following Ecobank’s warning against the acquisition of Honeywell Flour Mills Plc.
Honeywell Flour Mills Plc (HFMP) in a publication on the Nigerian Exchange said there is “no Winding up Petition currently pending or live against” the company in any court in Nigeria.
The document signed by the company secretary, Yewande Giwa, read in part “It is pertinent to set the record straight that there is no Winding up Petition currently pending or live against HFMP or inhibiting HFMP or its owners from dealing in its assets. HFMP assures its investors, regulators and stakeholders that in all of its engagements with FMN, it received independent legal advice and asserts that the transaction is not in breach of any subsisting Order of Court.
“The issue as to whether HFMP is indebted to Ecobank is still before the courts and the final decision remains the exclusive preserve of the court. It is also important to state that the Court of Appeal judgement being referred to in the reports did not declare HFMP to be indebted to Ecobank.
“The assertions lack merit, were written in bad faith and are a deliberate attempt to undermine a transaction that will result in substantial benefit to the Nigerian economy and entrench the collaboration of two publicly quoted companies.
Honeywell Flour Mills Plc said that it entered the transaction with Flour Mills of Nigeria Plc after considering all legal issues. It added that its management will continue to act in the best interest of all concerned and work diligently to preserve value for shareholders.
Flour Mills of Nigeria in separate publication signed by the company secretary/ director, legal services, Umolu Joseph A. O assured its stakeholders that the “recent announcement by the Group to assume majority shareholder of Honeywell Flour Mills Plc on Monday 22nd of November, 2021 was made after carrying out necessary due diligence and obtaining appropriate legal guidance.”
FMN also said that the “agreement is not in breach of any subsisting Order of Court in matters relating to any third party.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.