Flour Mills of Nigeria Plc will commence its N39.86 billion ($130 million) share sale to existing investors today, Monday, January 15, as acceptance list closes on Wednesday, February 21.
Following the receipt of shareholders’ approval in May 2015 to raise additional capital via a rights issue, the company received clearance of the issue documents from Securities and Exchange Commission and The Nigerian Stock Exchange to proceed with Series 1 of the Rights Issue Programme.
The company now intends to raise N39,855,845,286.00 by way of rights to existing shareholders, on the basis of nine new shares for every 16 shares held by shareholders, whose names appeared in the register of members of the company as at December 8, 2017 at an issue price of N27.00 per share. The issue price of N27 represents a discount of 23 per cent to the company’s closing share price on the date of announcement.
It will be recalled that at the the signing ceremony recently, the Group Managing Director of Flour Mills of Nigeria, Mr Paul Gbededo, said the Rights Issue was part of strategy to grow and build long-term value for all stakeholders, noting that the proceeds from the rights issue would be used to strengthen the company’s capital base by deleveraging it’s balance sheet, supporting our working capital needs and positioning the company to exploit value-accretive opportunities, whilst giving greater operational and financial flexibility to ensure business growth and continuity.
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