Flour Mills of Nigeria Plc (FMN) has announced plans to buy out its minority shareholders after receiving the necessary regulatory approvals to move forward with the process.
The company, one of Nigeria’s largest food and agro-allied businesses, disclosed on Tuesday that its majority shareholder will propose a formal buy-out offer to minority shareholders.
The buyout will be conducted through a scheme of arrangement, having already received the green light from the Nigerian Exchange Limited (NGX) and the Securities and Exchange Commission of Nigeria (SEC).
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With the development, FMN is set to streamline its ownership structure, aligning the company’s operations with its long-term vision.
According to, Boye Olusanya, FMN’s group managing director, the move is part of the company’s broader strategy to position itself as a leading pan-African food business.
“In line with FMN’s ambition to become the leading Pan African food business that feeds and enriches lives of its consumers every day with quality brands, this move aligns with our strategy aimed at positioning the company to achieve its ten-year vision of building a company that is sustainable, resilient, dynamic, and adaptable in its people, systems, and structures,” Olusanya explained.
The proposed buyout is expected to enhance FMN’s management efficiency and decision-making capabilities by allowing the company to operate with more agility. The restructuring will enable the majority shareholder to better align FMN’s entities with its unique characteristics and attract the necessary investments to support the long-term growth.
As part of the process, FMN has notified both the NGX and SEC of the buyout offer. The company will now file an application with the Federal High Court to convene a shareholder meeting, where the resolution to buy out minority shareholders will be proposed. The resolution will pass if at least 75 percent of members present and voting—either in person or by proxy—approve it during the Court-Ordered Meeting (COM).
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FMN’s board of directors has already recommended the offer to shareholders for consideration, highlighting the potential benefits of the buyout. If successful, this strategic move is expected to bolster FMN’s capacity to innovate and grow while maintaining a sharp focus on creating long-term value for the business and its stakeholders.
