Flour Mills of Nigeria Plc said its board has given approval in principle to the plans to commence with activities to raise additional funds through a Rights Issue and Medium-Term Notes.
In a statement released earlier today, the company disclosed that it had registered a shelf fundraising program in 2016 with the Securities and Exchange Commission to raise up to NGN40 Billion in equity funds through a Rights Issue; and plans are now in progress towards the possibility of commencing with the first tranche. The exact amount to be raised will be confirmed by the Board of Directors in due course.
Additionally, the company has also revealed plans to raise NGN70 billion through Medium Term Notes. The company affirms that it has commenced discussions with stakeholders – Financial Advisers, Legal Advisers and Issuing Houses to determine the right time and cost for issuing such financial instruments which will eventually be duly registered with the proper financial bodies.
Flour Mills of Nigeria Plc (FMN) was incorporated on 29th September, 1960 as a private limited liability company with a modest paid-up share capital of NGN1 million and converted to a public company in November, 1978. The beneficial interest in the company’s equity is held by Nigerian and Overseas shareholders.
Presently, two foreign shareholders own about 56% of the company’s paid-up share capital. The balance is held by over 75,000 individuals and institutional investors.