Monday, February 05, 2018/ 12.15PM / Cordros Capital
Flour Mills of Nigeria (FLOURMILL) Rights Issue, opened on 15 January, 2018, will close on Wednesday, 21 February 2018. The Rights Issue is being undertaken to enable FLOURMILL deleverage its balance sheet, support working capital needs, and position the company to exploit value-accretive opportunities.
Details of the Rights:
Being Issued - 1,476,142,418 Ordinary Shares of 50 kobo each
Rights Price - N27.00 per share
Gross Issue Proceeds - N39,855,845,286
Provisional Allotment - 9 new Ordinary Shares for every 16 Ordinary Shares of 50 kobo each held as at the close of business on 8 December 2017
Worthy of Note:
(1) The Rights is offered at 20.24% discount to the stock's current market price of N33.85,
(2) Our most recent research report values the company’s stock at N38.89, and
(3) The theoretical market price of the stock after the Rights is estimated at N31.38.
In all three cases above, upside potential on the Rights price ranges between 16.24% and 44.04%.
Shareholders who do not wish to take up their Rights should take a cue from the wide upside potential in trading their Rights to interested investors.
How to Participate in the Rights:
(1) For existing qualified shareholders
• Complete the rights issue form indicating full acceptance, partial acceptance or requesting additional rights
• Make payment for the total rights taken (either cheque or bank transfer) either directly to the Registrars or preferably through the stockbroker
•Submit the completed the rights issue form and all evidence(s) of payments to the receiving agent for onward submission
(2) For potential investors
• Complete share transfer form
• Make payments for agreed traded rights
• Submit transfer form and evidence of payment to receiving agents