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Friday, January 5, 2018 /4:45 PM / NSE
Following
the receipt of shareholders' approval in May 2015 to raise additional
capital via a Rights Issue, Flour Mills of Nigeria PLC ("the Company" or
"Flour Mills of Nigeria" or "FMN") has now received clearance of the
issue documents from the Securities and Exchange Commission and The
Nigerian Stock Exchange to proceed with Series 1 of the Rights Issue
Programme. This Programme enables the Company to raise funds in several
tranches over a three-year period. The Rights Issue is being undertaken
as part of the long-term plan to strategically position FMN for
sustainable growth.
The
Company now intends to raise N39,855,845,286.00 by way of rights to
existing shareholders, on the basis of 9 new shares for every 16 shares
held by shareholders, whose names appeared in the register of members of
the Company as at 08 December 2017 at an issue price of N27.00 per
share. The Issue price of N27.00 represents a discount of 23% to the
Company’s closing share price on the date of announcement,
At the Signing Ceremony which held in Lagos, on 05 January 2018,
Mr. Paul Gbededo, the Group Managing Director of Flour Mills of Nigeria
commented "The Rights Issue is part of our strategy to grow and build
long-term value for all stakeholders. The proceeds from the Rights Issue
will be used to strengthen the Company’s capital base by deleveraging
our balance sheet, supporting our working capital needs and positioning
the Company to exploit value-accretive opportunities, whilst giving
greater operational and financial flexibility to ensure business growth
and continuity”
FMN
has a long and rich history in Nigeria and continues to evolve into
becoming the leading food and agro-allied group on the continent. FMN’s
commitment to sustainability as a corporate strategy is shown in
different levels of its operations and activities while the Company’s
customer centric culture remains focused on both product and process
innovation aimed at building value for all stakeholders.
Full
terms of the Rights Issue will be set out in a Rights Circular to be
mailed directly to Shareholders of the Company, which contains a
Provisional Allotment Letter and the Participation Form.
Please
read the Rights Circular and where in doubt, consult your Stockbroker,
Fund/Portfolio Manager, Accountant, Banker, Solicitor, or any other
professional adviser for guidance before subscribing.
Stanbic
IBTC Capital Limited is acting as Lead Issuing House, while FBNQuest
Merchant Bank Limited and Zenith Capital Limited are acting as Joint
Issuing Houses to the Rights Issue.
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