FLOUR MILLS OF NIGERIA PLC TO ACQUIRE FIRST BANK OF NIGERIA LIMITED’S EQUITY IN HONEYWELL FLOUR MILLS PLC

The transaction is in line with FMN’s global growth strategy

Lagos, Nigeria – Flour Mills of Nigeria Plc. (“FMN”) today announced that it has reached an agreement with Honeywell Group Limited (“HGL”), the majority shareholder of Honeywell Flour Mills Plc. (“HFMP”), to acquire a 71.69% majority shareholding interest in HFMP. In addition, FMN also entered into an agreement with First Bank of Nigeria Limited (“FirstBank”) to acquire the Bank’s 5.06% equity in HFMP. Consequently, upon completion of the acquisition, and subject to obtaining all requisite regulatory approvals, FMN is set to hold a circa 76.75% equity interest in HFMP.

Given FMN’s parallel negotiations for both stakes culminating in the agreements being signed on the same date, the basis for arriving at key commercial terms including final equity price per share, will be the same. The price payable to FirstBank will be the same with HGL’s.

Further details will be communicated to the market upon obtaining relevant regulatory approvals from the regulators.

Shareholders and potential investors are advised to exercise caution when dealing in FMN’s shares until a further announcement is made.

Commenting on the transaction, Omoboyede Olusanya, Group Managing Director of FMN, said: “The proposed transaction is part of our global growth strategy, which is aligned with our vision to not only be an industry leader, but also, a national champion for Nigeria in the Food and Agro-allied industries”.

About Flour Mills of Nigeria Plc.
Flour Mills of Nigeria (“FMN”) is recognized as one of Nigeria's leading Food and Agro-allied groups. FMN is devoted to feeding the nation while actively investing in attaining Nigeria’s food self-sufficiency goals. Since 1960, through its iconic Golden Penny brand of flour, pasta, semolina, sugar, starch, oil, spreads and breakfast cereals, it has continued to build a diversified portfolio of accessible and wholesome food products, a robust Pan Nigerian distribution network and investments that enhance the lives of Nigerians today and in the future.

The Group operates 17 modern and best in class manufacturing facilities across 12 states with production capabilities across grain milling, edible oil and sugar refining, agro inputs and animal nutrition and proteins. FMN’s logistics and distribution, packaging and port operation are among Nigeria’s best in class.

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