In 1963, the elder Coumantaros established the business as a
single-product operation, transforming it from a small factory located at a
Lagos seaport into a conglomerate with an annual turnover of N2.3 trillion.
This remarkable revenue achievement, unparalleled by any
Nigerian bank or banking group aside from Access Holdings, highlights the
significant manufacturing powerhouse that the company has become in just over
sixty years, coinciding with Nigeria's independence.
The late Coumantaros, an avid yachtsman from Athens,
envisioned a wheat milling enterprise that has since expanded its reach into
various regions of West Africa, including Liberia.
Today, the company operates in a much broader and more
intricate landscape, diversifying into numerous sectors beyond food processing,
such as logistics, port operations, real estate, power generation, and
agribusiness.
Currently, the company's assets are valued at N1.48
trillion, with earlier estimates even surpassing this figure. According to the
latest annual report, Excelsior Shipping Company, which serves as the parent
company of Flour Mills of Nigeria, is an offshore trust registered in Liberia.
This entity has minimal online visibility, lacking a known
website, and its operations are not readily accessible on the internet.
Liberia, recognized as a tax haven, was designated for sanctions by the
Organisation for Economic Cooperation and Development in 2000 and has been
identified by the Tax Justice Network as responsible for 0.42 percent of global
corporate tax abuse risks.
Excelsior Shipping Company, founded by the late Mr.
Coumantaros, currently holds a 63.3 percent controlling interest in Flour Mills
of Nigeria. The leadership has now passed to his son, John Coumantaros, who has
served as chairman of the food company since 2014.
On Tuesday, Flour Mills of Nigeria notified the Nigerian
Exchange regarding the trust's decision to acquire the remaining shares held by
individual and institutional investors, who collectively own 37.7 percent of
the company. The company confirmed that it has received the necessary approval
from the Securities and Exchange Commission, which regulates the stock market,
allowing the transaction to move forward.
A crucial factor in determining the outcome of this deal
will be a statutory meeting scheduled for November 14, where minority
shareholders will vote on whether to sell their shares or retain their
investments.
The proposed buyout price of N70 per share represents a 26.2
percent premium over Flour Mills of Nigeria's trading price on Tuesday,
indicating that Excelsior Shipping Company is prepared to invest over N105
billion to privatize the firm.
The company also noted that the scheme is contingent upon
approval from Flour Mills' shareholders during a Court-Ordered Meeting, as well
as the endorsement of the Federal High Court. Flour Mills is the principal
stakeholder in Northern Nigerian Flour Mills, a publicly listed milling company
with total assets amounting to N21.6 billion.
It stands alongside Dangote Sugar and BUA Foods as one of
Nigeria's leading sugar producers and manufactures popular products such as
TopFeeds and Golden Penny, which includes edible oils, bread spreads, and
sugar.