Flour Mills of Nigeria Plc (FMN) yesterday 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.
The company said in a statement that its agreement with HFMP is not in breach of any subsisting Order of Court in matters relating to any third party, saying this assurance became necessary in view of the publication captioned “Ecobonk Warns against Acquisition of Honeywell Flour Plc, Alleges Company Facing Winding Up Proceedings”.
“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.
FMN had on Monday 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.
The company said 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).