(3 minutes read)
- Nigeria’s biggest flour-maker- Flour Mills of Nigeria Plc – has brokered a deal to buy out the majority equity interest from its arch rival Honeywell Flour Mills
- The major share of the latter is owned by billionaire and immediate past chair of FBN Holdings Oba Otudeko.
- Flour Mills of Nigeria purchased 71.69 per cent stake in Honeywell
- The company has entered into a separate pact with FBN Holdings Group to acquire the financial services group’s stake of 5.06 per cent in Honeywell
Nigeria’s biggest flour-maker- Flour Mills of Nigeria Plc – has brokered a deal to buy out the majority equity interest from its arch rival Honeywell Flour Mills. The major share of the latter is owned by billionaire and immediate past chair of FBN Holdings Oba Otudeko.
Flour Mills of Nigeria purchased 71.69 per cent stake in Honeywell. The company has entered into a separate pact with FBN Holdings Group to acquire the financial services group’s stake of 5.06 per cent in Honeywell. This brings its consolidated holding in Honeywell to 76.75 per cent. In effect, Flour Mills will be taking over about 6.09 billion units of Honeywell’s 7.93 billion ordinary shares, at a price of N3.39 per unit.
The Flour Mills’ takeover of Honeywell would entail a cost of N80 billion. This is the third takeover of the Flour Mills. It had earlier taken over Rainoil’s more than 60 per cent stake in Eternal Oil and Ardova’s takeover of Enyo Oil. Honeywell has returned 182.5 per cent in the past one year. Both the companies are waiting for green signal from regulatory approvals.
Flour Mills reported revenue of N771.6 billion for the financial year ended 31st December 2020. That was bigger than what was recorded by Nigeria’s biggest bank- Access Bank -for the same period, at N764.7 billion.
