The Flour Mills of Nigeria PLC (FMN) has announced the commencement of a restructuring operation in Nigeria with the aim of securing its future as a regional industrial powerhouse.
The company recently unveiled a share acquisition plan as part of its long-term growth strategy. FMN described this move as a critical step towards becoming a Pan-African food leader. The company is confident in its ability to unlock value, expand its presence across Africa, contribute to Nigeria’s economic prosperity, and inspire diversified business growth and returns.
FMN has been a vital player in Nigeria’s economy for 64 years. It has grown from a single flour milling company to a diversified Group involved in food production, agriculture, logistics, and more. However, the company believes that its conglomerate structure, while effective in the past, is now limiting its ability to fully capitalize on the opportunities presented by Africa’s growing markets.
According to a senior executive of the company, FMN is undergoing restructuring to unlock substantial value and enhance its competitiveness across Africa. This restructuring will allow the company to streamline its operations, focus on its core strengths, and pursue growth opportunities more efficiently in the continent. The share acquisition plan, which involves purchasing minority shares, plays a central role in this new strategy.
The restructuring process is taking place at a time when Nigeria, being Africa’s largest economy, is undergoing significant reforms aimed at diversifying its economy. These reforms create opportunities for companies like FMN to play a more prominent role in the nation’s food security and economic development.
Chairman of the FMN Board, Mr. John G. Coumantaros, stated, “We are committed to the growth of Nigeria, a mandate we have fostered for over six decades. Additionally, in line with our Pan-African vision, this positioning enables us to make more meaningful contributions not only to Nigeria’s economic growth but also progressively across the continent.”
With its restructuring, FMN aims not only to expand its footprint across Nigeria but also to capitalize on broader regional growth opportunities, starting with West Africa. Leveraging its expertise in food production and supply chain management, the company aims to address the region’s food security challenges and become a significant player in the industry.
Despite concerns about changes in ownership control, FMN assures stakeholders that the restructuring is driven by its long-term growth strategy and is firmly rooted in its Nigerian origin. The company’s initiative aims to enhance operational efficiency, unlock value, and expand its influence across Africa.
Minority shareholders are being offered a significant premium on their shares, providing them with an opportunity to unlock substantial value. This offer reflects FMN’s commitment to fair and transparent corporate governance and effective stakeholder relations.
