Flour Mills of Nigeria Plc and Honeywell Group Limited (HGL) have disclosed that they finally signed an agreement for the proposed combination of FMN and Honeywell Flour Mills Plc.
The companies, in a joint statement on Monday, said that, Honeywell Group will dispose 71.69 % stake in its listed subsidiary to Flour Mills at a total enterprise value of N80bn.
Flour Mills made this known in a separate statement that it has entered into an agreement with First Bank of Nigeria Limited to acquire the bank’s 5.06% equity in Honeywell Flour Mills.
“Consequently, upon completion of the acquisition, and subject to obtaining all requisite regulatory approvals, FMN is set to hold a circa 76.75% equity interest in Honeywell Flour Mills,” it said.
According to the joint statement, the proposed combination is subject to approval from the appropriate regulators.
“The complementary transaction combines FMN’s market-leading offerings that include grain-based foods, sugar, starches, oils, spreads and breakfast cereals with HFMP’s market leading diverse and differentiated range of carbohydrate products,” it said.
It states that stakeholders will benefit from it, more than combined track records of FMN and HFMP as well as their shared goal of making affordable and nutritious food available to Nigeria’s population.
Speaking on the transaction, the Managing Director, Honeywell Group, Obafemi Otudeko, said that, “Today’s announcement is in line with the evolution of Honeywell Group and our vision of creating value that transcends generations. For over two decades, we have supported Honeywell Flour Mills to build a strong business with a production capacity of 835,000 metric tonnes of food per annum.
“Following the transaction, Honeywell Group will be strongly positioned to consolidate and expand its investment activities, including as a partner of choice for investors in key growth sectors.”
The Group Managing Director of Flour Mills of Nigeria, Omoboyede Olusanya, said, “The proposed transaction is aligned with our vision not only to be an industry leader but a national champion for Nigeria. We believe that this will create an opportunity to combine the unique talents of two robust businesses.”