Honeywell Flour To Sell Assets To Flour Mills of Nigeria Amid Mandatory Takeover

Flour Mills of Nigeria (FMN) has disclosed its intention for a mandatory takeover of shares in Honeywell Flour Mills, as the former looks to expand its operation in Nigeria through the latter.

Prme Business Africa gathered that Flour Mills plan to acquire a volume of 79.30 million shares of Honeywell Flour, by offering the shareholders of the company N4.20kobo per share in exchange.

The share purchase will cost Flour Mills of Nigeria N333.06 million upon the completion of the transaction and share transfer, which will see the investor own a total of 6.16 million shares of Honeywell Flour.

Prior to the recent development, Flour Mills had acquired 71.69% stake in Honeywell Flour from Honeywell Group, and had also purchased 5.06% stake First Bank of Nigeria Plc owned in Honeywell Group.

The stakes are held by Ecowise Horizon Investment Limited and Creywise Investment Solution Limited, through which Flour Mills of Nigeria plans to acquire the recent 79.30 million shares.

In a statement obtained from the Nigerian Exchange Limited, the capital market authority, Honeywell said, “By way of additional information – following the previous notification to Nigerian Exchange Limited on July 29 2022 regarding the Honeywell Flour Mills Plc (“Honeywell or “the Company’) Mandatory Take-Over Offer (MTO) by Flour Mills of Nigeria Plc (“Flour Mills”) (through Ecowise Horizon Investment Limited and Greywise Investment Solution Limited.”

The statement reads further, “please be advised that the MTO Is priced at N4.20 (Four Naira, Twenty Kobo) per share; being the price at which the Block Trade was executed. The offer has commenced.”

Meanwhile, in late July 2022, Honeywell Flour had stated that the qualification date for the stock exchange with Flour Mills will be “5:00pm on Thursday August 5, 2022; being the settlement date for all trades that are executed on Friday, July 29, 2022.”