Post Views: 95 The board of Flour Mills of Nigeria Plc, on Friday, announced plans to raise N39.855bn by way of rights to existing shareholders on the...
The board of Flour Mills of Nigeria Plc, on Friday, announced plans to raise N39.855bn by way of rights to existing shareholders on the basis of nine new shares for every 16 held by shareholders on its register as at December 8, 2017.
The offer price of N27 per share, according to a statement by Umolu Joseph, Company Secretary/Director of Legal Services, represents a 23% discount to its “closing share price on the day of the announcement.”
The statement quoted Paul Gbededo, the company’s Group Managing Director as saying at the signing ceremony on Friday, January 5, 2018, that the offer “is part of our strategy to grow and build long-term value for all stakeholders.”
The offer proceeds, he continued, “will be used to strengthen the company’s capital base by deleveraging our balance sheet, supporting our working capital needs and positioning the company to exploit value-accretive opportunities, whilst giving greater operational and financial flexibility to ensure business growth and continuity.”
The statement which listed IBTC Capital Limited as lead issuing house, while FBN Merchant Bank Limited and Zenith Capital Limited are joint issuing houses to the rights issue, did not however say when the issue would open or close.
The offer, the statement added, was approved by shareholders in May 2015 and is Series 1 of the rights issue programme, which enables the company raise funds in several tranches over a three-year period to strategically position FMN for sustainable growth.