By Chinwendu Obienyi
Following receipt of all requisite regulatory approvals, Honeywell Flour Mills Plc (HFMP) at the weekend informed the Nigerian Exchange Limited (NGX) and the general public that Flour Mills of Nigeria Plc (FMN) has acquired a 71.69 per cent stake in HFMP from three entities related to Honeywell Group and the transaction has now been consummated.
With the acquisition, HFMP ceases to be a member of the Honeywell Group.
In a statement sent to Daily Sun, indicates that the acquisition has been approved by all relevant regulators, including the Federal Competition and Consumer Protection Commission (FCCPC), NGX and the Securities and Exchange Commission of Nigeria (SEC).
The acquisition of the majority stake by FMN was first announced last November, where it stated that the proposed transaction will combine two businesses with shared goals and create a more resilient national champion in the Nigerian foods industry, ensuring long-term job creation and preservation.
Honeywell Group disposed of a 71.69 per cent stake in HFMP to FMN at an equity price of N4.20 per share.
Commenting on the transaction, Honeywell Group’s Managing Director, Obafemi Otudeko, said the company was pleased to have secured regulatory approvals for the transaction, which will create a business that further serves Nigerian consumers.
“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, as we 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”, Otudeko said.
For his part, the Group Managing Director, FMN, Boye Olusanya, stated that as the company has began execution of this landmark transaction that would positively impact Nigeria’s food security architecture and overall competitiveness, the two combined entities 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.”, Olusanya stated.