Flour Mills of Nigeria Plc and Honeywell Group Limited have announced the signing of an agreement for the proposed combination of FMN and Honeywell Flour Mills Plc.
The companies, in a joint statement on Monday, said Honeywell Group would dispose of a 71.69 per cent stake in its listed subsidiary to Flour Mills at a total enterprise value of N80bn.
Flour Mills announced in a separate statement that it had entered into an agreement with First Bank of Nigeria Limited to acquire the bank’s 5.06 per cent 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 per cent 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.
