Flour Mills of Nigeria Plc and Honeywell Flour Mills Plc, on Friday night, confirmed that its bid to acquire the majority 76.75% stake in Honeywell Flour Mills Plc has been consummated by the various parties.
Flour Mills, in a filing on the Nigerian Exchange Limited portal by Joseph Umolu, its company secretary/director, Legal Services, noted that all the requisite regulatory approvals have been obtained to acquire both the 71.69% stake (5,912,363,565 units) in Honeywell Flour Mills Plc from its parent company- the Honeywell Group, as well as the 5.06% (400,967,024 shares) held by First Bank of Nigeria Limited.
He explained that “at a total enterprise value of ₦80 billion, Honeywell Group disposed a 71.69% stake in HFMP to FMN.
“Given FMN’s parallel negotiation for both stakes, culminating in the agreements being executed, the transaction was concluded at N4.20 being the final equity price per share,” he added.
Also, a statement by Honeywell Flour Mills further noted that the 71.69% stake of Honeywell Group in HFMP was acquired from three entities related to Honeywell Group, following which it ceases to be a member of the Honeywell Group.
The acquisition, both parties affirmed, has been approved by all relevant regulators, namely the Federal Competition and Consumer Protection Commission (FCCPC); NGX Regulation Limited (NGX RegCo); and the Securities and Exchange Commission of Nigeria (SEC).
The statement quoted Boye Olusanya, Group Managing Director, FMN as expressing delight “that approvals have been received and we are all set to begin execution of this landmark transaction that would positively impact Nigeria’s food security architecture and overall competitiveness. We commend and thank all regulatory and approving bodies – FCCPC, SEC and NGX, for supporting this historic vision.”
He further: “Our combined brands and businesses will mean an expansive scale of food production for both Nigeria and Africa. Together, Flour Mills of Nigeria and Honeywell Flour Mills will be able to achieve rapid growth while maintaining high-quality products serving the evolving needs of our consumers.
“The acquisition will further serve as a catalyst for an even stronger stream of innovation that is focused on local content offerings, enabling our customers across the nation to seamlessly benefit from improved access to a wider product range and a robust pan-Nigerian distribution network,” he assured further.
Also commenting on the transaction, Honeywell’s Group Managing Director, Obafemi Otudeko expressed pleasure at the regulatory approvals secured for the transaction, which he noted, “will create a business that further serves Nigerian consumers.”
“As we entrust Flour Mills of Nigeria with building on Honeywell Flour Mills’ strong legacy, we will work closely with them to ensure a seamless integration, setting the combined company up for a successful future,” he said, while appreciating the NGX, FCCPC, and the SEC for their support.
He pledged to continue collaborating “closely with them across our various businesses and investments to deliver on the national vision of building a resilient economy through successful enterprise.”
The FMN statement recalled that “an announcement was made on November 22, 2021, regarding their agreement to the transaction which would bring together two businesses with shared goals to create a more resilient national champion in the Nigerian foods industry.”
This latest acquisition, he stressed “enables FMN to extend its reach across Nigeria, provide enhanced manufacturing capacity and create synergies to deliver improved products to consumers.
Nigeria, and Africa as a whole, according to the company founded in 1960 and operating from 17 manufacturing facilities across 12 states in value-chains such as grain milling, edible oil, and sugar refining, agro-inputs, and animal nutrition and proteins, will benefit from the group’s renewed focus on the developing agricultural value chains and backward integration imperative. This focus is further heightened by unfolding global events, and we are responding, among other initiatives, with the set-up of regional expansion platforms, ultimately geared towards improving food security and employment opportunities across Nigeria.