SEC, NGX Approve Flour Mills’ Buyout Of Minority Shareholders

The Securities and Exchange Commission (SEC) and the Nigerian Exchange Limited (NGX) have given Flour Mills of Nigeria Plc (FMN) the go-ahead to proceed with the buyout of its minority shareholders.

In a recent statement, FMN revealed that its majority shareholder had initiated the process to acquire all remaining minority shares. The company emphasised that the transaction would be conducted through a scheme of arrangement and has already received a ‘No Objection’ from the relevant regulatory bodies, including the SEC and NGX.

The company described the move as part of its strategic plans to streamline operations across its entities. According to the board, this buyout would allow FMN to better align its business segments, attract necessary investments, and pursue long-term growth while creating value for stakeholders.

“It is also expected to lead to improved management efficiency and decision-making processes, as it allows the company to operate with greater agility,” the statement read.

Following approval from regulators, FMN will now file an application with the Federal High Court to convene a shareholders’ meeting. During this court-ordered session, shareholders will have the opportunity to vote on the proposed buyout. For the resolution to pass, at least 75 percent of those present and voting, either in person or by proxy, must support the move.

FMN’s Group Managing Director, Mr. Boye Olusanya, said that the initiative is in line with the company’s long-term ambition.

“This move aligns with our strategy aimed at positioning the company to achieve its 10-year vision of building a company that is sustainable, resilient, dynamic, and adaptable in its people, systems, and structures,” Mr. Olusanya explained.

In a related development, FMN recently commissioned a solar-powered clean water plant in the Gbaji-Yeke Community of Badagry, further demonstrating its commitment to driving sustainable growth and contributing positively to communities across Nigeria. The clean water project was financed by FMN as part of its corporate social responsibility efforts.

With these strategic moves, FMN continues to strengthen its position in the food sector while remaining focused on sustainability and growth.