LAGOS, NIGERIA — India-based Excelsior Shipping Co. Ltd., the majority shareholder of Flour Mills of Nigeria (FMN), recently received approval from the Nigerian Securities and Exchange Commission (SEC) to acquire the minority shareholder interest of FMN.
FMN, one of the world’s largest flour millers, said it notified Nigerian Exchange Ltd. that a scheme of arrangement between the company and the minority shareholders will be used to carry out the transaction. A meeting ordered by the nation’s Federal High Court is scheduled for Nov. 14 to consider the transaction, the company said.
The transaction is also subject to the approval of the shareholders of FMN at the court-ordered meeting as well as the sanction of the Federal High Court.
With a daily wheat grinding capacity of 8,000 tonnes, FMN operates one of the largest flour milling complexes in the world in Apapa.
In its most recent earnings report, FMN showed a net profit of N6.9 billion ($4.3 million) during the first quarter, a significant improvement from a loss of N9.3 billion during the same period a year ago.
The Food segment, which involves flour milling and production of pasta and noodles, swung to a net profit before taxes of N5.3 billion during the first quarter, up from a loss of N11.4 billion the previous year.
