June 23, 2011 by Obinna Chima
Shareholders of Flour Mills of Nigeria Plc Wednesday endorsed the plans by the company to raise additional N1 billion so as to increase its share capital to N2 billion.
The shareholders also approved the internal restructuring of the firm’s pasta business and interests of the Company and Golden Pasta Company Limited.
The shareholders gave the approval at Flour Mills Extraordinary General Meeting held in Lagos.
The meeting also authorised the Directors of the company to issue shares by way of rights to existing shareholders or by offer for subscription to the general public.
In his address, Chairman of Flour Mills, Mr. George Coumantaros, said the move was very vital in an increasingly competitive business environment, stressing the importance of Flour Mills to sustain its leadership position.
According to him, the additional equity capital to be raised will help position the Company to pursue potentially high growth business opportunities without further stretching the balance sheet.
He revealed that the Rights Issue would open towards the end of the year after the Annual General Meeting
A Director of the company, Mr. John Coumantaros, also revealed that the Company plans to raise between N30-N40 billion to support the bond it had earlier secured.
He said that the company looked forward to growing its existing food business and exploring new opportunities in the Fast Moving Consumer Goods segment thus providing a Golden Penny basket to consumers. Another area to be expanded, according to the Director, is the cement business following huge investment in UNICEM in the South-East of Nigeria.