Flour Mills of Nigeria Plc (FMN) said yesterday that the agreement to assume majority shareholder status of Honeywell Flour Mills Plc (HFMP) is not in breach of any subsisting court order.
In a statement signed by its company secretary and director, Legal Services, Umolu A.O. Joseph , the company said it made the announcement on Monday after carrying out necessary due diligence and obtaining appropriate legal guidance.
It said the assurance became necessary following media reports suggesting that Ecobonk had warned against acquisition of Honeywell Flour Mills on the ground that the company was facing winding up proceedings.
FMN stated, “Consequently, FMN confirms that this agreement is not in breach of any subsisting Order of Court in matters relating to any third party.
“Stakeholders are therefore urged to maintain their trust in FMN’s management, whose actions are guided by global best practices, as we work diligently to maintain the Group’s sterling reputation as one of Nigeria’s leading and oldest agro-allied companies.
“It is expected that this combination will create a more resilient national champion in the Nigerian food industry, ensuring long-term job creation and preservation.
“Greater benefits expected from the combination include enhanced efforts in attaining National food security objectives and leveraging opportunities stemming from the African Continental Free Trade Area (AfCFTA).”
In a statement issued on Monday, FMN had disclosed that it had reached an agreement for the proposed combination of FMN through its affiliates and HFMP for a total enterprise value of NGN80 billion.”
It said 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.
FMN noted that under the proposed transaction which is subject to approval from the appropriate regulators, final equity price per share payable will be determined based on HFMP’s adjusted net debt and net working capital at the date of completion.