Flour Mills of Nigeria Completes 71.69% Stake Acquisition In Honeywell Flour Mills

MICHAEL AKINOLA

Following receipt of all requisite regulatory approvals, Honeywell Flour Mills Plc (HFMP) informs Nigerian Exchange Limited and the general public that Flour Mills of Nigeria Plc (FMN) has acquired a 71.69% stake in HFMP from three entities related to Honeywell Group and the transaction has now been consummated. 

With this acquisition, HFMP ceases to be a member of the Honeywell Group.

The acquisition has been approved by all relevant regulators, namely the Federal Competition and Consumer Protection Commission (FCCPC); NGX Regulation Limited (NGX RegCo); and the Securities and Exchange Commission of Nigeria (SEC).  

FMN and Honeywell Group had on November 22, 2021, announced the proposed transaction which would bring together two businesses with shared goals in order to create a more resilient national champion in the Nigerian foods industry.

Honeywell Group disposed of a 71.69% stake in HFMP to FMN at an equity price of N4.20 per share.

Commenting on the transaction, Honeywell Group’s Managing Director, Mr. Obafemi Otudeko said: “We are pleased to have secured regulatory approvals for the transaction, which will create a business that further serves Nigerian consumers. As we entrust Flour Mills of Nigeria with building on Honeywell Flour Mills’ strong legacy, we will work closely with them to ensure a seamless integration, setting the combined company up for a successful future.

“We thank the NGX, FCCPC, and the SEC for their support, and will continue our close collaboration with them across our various businesses and investments to deliver on the national vision of building a resilient economy through successful enterprise.”

Detail Commercial Solicitors acted as legal advisers to Honeywell Group.