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- Flour Mills of Nigeria Plc observed that acquiring a majority stakeholder position in rival Honeywell Flour Mills was made following necessary due diligence and obtaining appropriate legal guidance.
- www.trendsnafrica.com has reported about the recent takeover of the mill.
- The Nigerian Exchange Limited recently issued a notification that the pact was not in violation of any subsisting court order in issues pertaining to any third party
Flour Mills of Nigeria Plc observed that acquiring a majority stakeholder position in rival Honeywell Flour Mills was made following necessary due diligence and obtaining appropriate legal guidance. www.trendsnafrica.com has reported about the recent takeover of the mill.
The Nigerian Exchange Limited recently issued a notification that the pact was not in violation of any subsisting court order in issues pertaining to any third party, Flour Mills of Nigeria’s spokesperson maintained. The clarification of the Mill came in response to reports saying that Ecobank has warned Flour Mills against the acquisition of Honeywell. According to reports, Ecobank told the Mill that Honeywell was facing winding up proceedings.
The Floor Mill in a statement issued said that the stakeholders should maintain their trust in FMN’s management whose actions were guided by global best practices. The Mill was working diligently to maintain the group’s sterling reputation as one of Nigeria’s leading and oldest agro-allied companies. The Flour Mill closed a deal with Honeywell to buy out a 71.69 per cent interest in the latter and FBN Holdings’ 5.06 per cent stake in the entity all aggregating to 76.75 per cent.
The valuation of the takeover is put at N80 billion. In its turn, Honeywell claimed that there was no winding up petition currently pending against HFMP in any court in Nigeria. The issue pending to be decided was whether HFMP was indebted to Ecobank. The issue was still before the courts and the final decision remained with the judiciary and not with the Ecobank.
