Flour Mills of Nigeria Plc (FMN) has assured its stakeholders that the recent announcement by the Group to assume majority shareholder status of Honeywell Flour Mills Plc (HFMP) was made after carrying out necessary due diligence and obtaining appropriate legal guidance.
Consequently, FMN confirms that the agreement is not in breach of any subsisting Order of Court in matters relating to any third party.
This further assurance has become necessary in view of the publication captioned “Ecobonk Warns against Acquisition of Honeywell Flour Mills, Alleges Company Facing Winding Up Proceedings”, Flour Mill said.
“Stakeholders are therefore urged to maintain their trust in FMN’s management, whose actions are guided by global best practices, as we work diligently to maintain the Group’s sterling reputation as one of Nigeria’s leading and oldest agro-allied companies,” it noted.
Flour Mills of Nigeria in a Statement had earlier disclosed that it had reached an agreement for the proposed combination of FMN through its affiliates and HFMP, for a total enterprise value of N80 billion. It is expected that this combination will create a more resilient national champion in the Nigerian food industry, ensuring long-term job creation and preservation.
Greater benefits expected from the combination include enhanced efforts in attaining National food security objectives and leveraging opportunities stemming from the African Continental Free Trade Area (AfCFTA).