Flour Mills of Nigeria Plc intends to secure additional funding amounting to N200 billion, pending approval from its shareholders.

This information was shared in a statement by the company’s secretary in advance of the 64th Annual General Meeting (AGM).

The AGM will also include the presentation of the audited financial results for the fiscal year ending March 31, 2024, along with reports from the directors, auditors, and the audit committee.

The proposal for the directors to raise N200 billion in additional capital is among the special items on the AGM agenda.

The statement noted, “To consider and, if deemed appropriate, approve the authorization for directors to raise additional capital totaling N200,000,000,000.”

While the rationale for the proposed N200 billion capital raise was not specified, the company recently revealed an offer from Excelsior Shipping Company Limited to acquire the minority shares in FMN Plc that are not owned by Flour Mills.

Other matters to be addressed at the AGM include the approval of a dividend of N1.08 per ordinary share of 50 kobo each for shareholders registered as of August 9, 2024. If approved, this dividend will be disbursed by Friday, November 15, 2024.

Furthermore, the AGM will review the disclosure of management compensation and grant authority to the directors to determine the remuneration for the company’s auditors.

Shareholders will also cast votes on the election and re-election of directors for various roles within the organization.

Several board members, including Mr. John Coumantaros, Prof. Jerry Gana, Mr. Alfonso Garate, Alhaji Rabiu Gwarzo, and Mrs. Yewande Sadiku, are up for re-election as they retire by rotation. 

In accordance with Section 282 of the Companies and Allied Matters Act (CAMA) 2020, Prof. Jerry Gana and Alhaji Gwarzo, both over the age of 70, will be re-elected. Additionally, shareholders will elect new members to the statutory audit committee, in compliance with Section 404(6) of CAMA 2020.

Flour Mills of Nigeria has exhibited a strong upward trend in its stock prices, increasing by 22% month-to-date as of mid-September 2024.

In its financial report for the period ending June 30, 2024, FMN announced a pre-tax profit of N7.36 billion, representing a notable recovery from the N9.33 billion pre-tax loss experienced in the same timeframe the previous year.

While trading volumes were relatively flat in August following the release of the results, the company's stock experienced a remarkable rebound in September, climbing by 22% within a span of just two weeks.