The company made this known in a statement by its Corporate
Communications Officer, Mrs Modupe Thani, on Saturday.
The company also acquired a 5.06 per cent stake in HFMP held
by First Bank of Nigeria Limited.
According to Thani, the transaction, which has now been
consummated by the parties, is aimed as creating a strong national champion for
the food industry in Nigeria.
The acquisition has been approved by all relevant
regulators, including the Federal Competition and Consumer Protection
Commission (FCCPC), Nigerian Exchange Limited (NGX), and the Securities and
Exchange Commission of Nigeria (SEC).
“An announcement was made on Nov. 22, 2021, regarding their
agreement to the transaction which would bring together two businesses with
shared goals to create a more resilient national champion in the Nigerian food
industry.
“This acquisition enables FMN to extend its reach across
Nigeria, provide enhanced manufacturing capacity, and create synergies to
deliver improved products to consumers.
“At a total enterprise value of N80 billion, Honeywell Group
disposed a 71.69 per cent stake in HFMP to FMN.
“Given FMN’s parallel negotiation for both stakes,
culminating in the agreements being executed, the transaction was concluded at
N4.20 being the final equity price per share,” the company revealed.
It added that Mr Boye Olusanya, Group Managing Director,
FMN, expressed delight that approvals had been received, and that the company
was ready for execution.
He said the landmark transaction would strengthen Nigeria’s
food security architecture and overall competitiveness.
“Our combined brands and businesses will mean an expansive
scale of food production for both Nigeria and Africa and together, Flour Mills
of Nigeria and Honeywell Flour Mills will be able to achieve rapid growth while
maintaining high-quality products serving the evolving needs of our consumers.
“The acquisition will further serve as a catalyst for an
even stronger stream of innovation that is focused on local content offerings,
enabling our customers across the nation to seamlessly benefit from improved
access to a wider product range and a robust pan-Nigerian distribution network.
“Nigeria, and Africa as a whole, will benefit from the
group’s renewed focus on developing agricultural value Chains and backward
integration imperative.
“This focus is further heightened by unfolding global events,
and we are responding, among other initiatives, with the set-up of regional
expansion platforms, ultimately geared towards improving food security and
employment opportunities across Nigeria,” the statement quoted him as saying.
Honeywell’s Group Managing Director, Mr Obafemi Otudeko, was
also quoted as saying that the deal struck would create a business that would
serve Nigerian consumers better.
“As we entrust Flour Mills of Nigeria with building on
Honeywell Flour Mills’ strong legacy, we will work closely with them to ensure
a seamless integration, setting the combined company up for a successful
future.
“We thank the NGX, FCCPC, and the SEC for their support, and
will continue our close collaboration with them across our various businesses
and investments to deliver on the national vision of building a resilient
economy through successful enterprise,” he said.
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