Flour Mills of Nigeria plans to raise N200bn additional capital
Flour Mills of Nigeria Plc plans to raise additional capital to the tune of N200 billion subject to approval of its shareholders.
This was disclosed in a statement by the company’s secretary announcing the 64th Annual General Meeting (AGM).
The AGM will also feature the presentation of the audited financial statements for the fiscal year ended March 31, 2024, along with reports from the directors, auditors, and the audit committee.
The proposal to order the Directors of the company to raise N200 billion in additional capital is one of the special businesses during the AGM.
According to the disclosure, “To consider and, if thought fit, approve the authorization of directors to raise additional capital to the tune of N200,000,000,000.”
The reason for the proposed N200 billion raise was not disclosed however, the company recently announced receiving an offer from Excelsior Shipping Company Limited to buy the minority shares in FMN Plc not held by Flour Mills.
Other resolutions include the approval of a dividend of N1.08 per ordinary share of 50 kobo each to shareholders listed on the company’s register as of August 9, 2024. If approved, the dividend will be payable by Friday, November 15, 2024.
Additionally, the AGM will consider the disclosure of management remuneration and authorise the directors to set remuneration for the company’s auditors.
Shareholders will also vote on the election and re-election of directors to various positions within the company.
Several board members are slated for re-election, including Mr. John Coumantaros, Prof. Jerry Gana, Mr. Alfonso Garate, Alhaji Rabiu Gwarzo, and Mrs. Yewande Sadiku, as they retire by rotation.
In compliance with Section 282 of the Companies and Allied Matters Act (CAMA) 2020, Prof. Jerry Gana and Alhaji Gwarzo, both over 70 years old, will be re-elected.
Shareholders will also elect new members to the statutory audit committee, following Section 404(6) of CAMA, 2020.
Flour Mills of Nigeria share prices have demonstrated a bullish performance in the stock market, surging 22 percent month-to-date by mid-September 2024.
In its financial results for the period ending June 30, 2024, FMN reported a pre-tax profit of N7.36 billion, marking a significant turnaround from the N9.33 billion pre-tax loss recorded during the same period in the previous year.
Although trading volumes remained stagnant in August after the results were published, the company’s stock price saw a substantial recovery in September, rising by 22% in just two weeks.
