The entire issued share capital of the Flour Mills of Nigeria has been delisted from the Nigerian ExchangeThis is a follow-up on the December 16 announcement suspending trading in the securities of FMNExcelsior Shipping now takes over as majority shareholder, while minority shareholders will wait for their stockbroker to settle them cash for shares
The Nigerian Exchange (NGX) has delisted Flour Mills of Nigeria Plc’s entire issued share capital, removing it from the exchange’s official list of stocks.
The NGX informed investors and members of the public about this delisting in its weekly market report.
A statement in the report confirms that the delisting is effective from December 30, 2024.
The Nigerian Exchange (NGX) has delisted Flour Mills of Nigeria Plc’s entire issued share capital, removing it from the official trading list.
Photo Credit: FMN
Source: UGC
The delisting follows the earlier suspension of trading in the company’s shares announced on December 16, 2024.
The NGX had issued a bulletin on December 16, with reference number: NGXREG/IRD/MB93/24/12/16, informing the investing public that it has suspended trading the securities of Flour Mills of Nigeria.
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LEADERSHIP reports that the statement in the NGX weekly report confirms that the suspension was a preparatory step for the subsequent delisting.
The statement read;
“Following the approval of the Company’s application to delist its entire issued share capital from Nigerian Exchange Limited (NGX), please be informed that the entire issued share capital of Flour Mills of Nigeria was, on Monday, December 30, 2024, delisted from the Daily Official List of NGX.”
Excelsior Shipping now in charge
Flour Mills of Nigeria Plc had announced that its majority shareholder, Excelsior Shipping Company Limited, has proposed to acquire all shares from minority shareholders.
This move consolidates the new ownership and completes the delisting from the NGX.
The Securities and Exchange Commission (SEC) gave a “no objection” ruling to the acquisition, thus completing regulatory requirements.
As stipulated in section 715 of the Companies and Allied Matters Act (CAMA) 2020, all outstanding shares will now be transferred to the majority shareholder, Excelsior Shipping Company Limited.
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What happens to minority shareholders
In a chat with Henzodaily.ng, stock market analyst Olumide Adesina explained that the process has commenced to transfer all the shares to the majority shareholder and settle the minority shareholders in cash.
He said;
“Minority investors that did not sell their shares before now, would have their shares transferred to the majority shareholder and settled in cash. They just have to wait for their stockbroker to settle in cash”.
He added that this process would be done based on the settlement price.
Flour Mills plans expansion
Just recently, Henzodaily.ng reported that Flour Mills of Nigeria Plc would invest $1 billion in expansion and restructuring over the next four years.
Chairman John Coumantaros stated in the interview that the company would be restructuring its 22 units into five separate companies.
At least $500 million would be invested in its sugar operations in Niger state to boost output from 100,000 tons to over 400,000 tons per annum.
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Another $100 million would be invested in construction of a cassava processing plant, to cut down starch imports and increase breakfast cereals’ range of products.
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Source: Henzodaily.ng