Shareholders vote massively in favour of FMN’s minority shares buyout scheme
Flour Mills of Nigeria (FMN) has successfully navigated a critical phase in its corporate history, as the company’s minority shareholders overwhelmingly approved the buyout offer put forward by the majority shareholders.
At its 64th Annual General Meeting (AGM) held on November 14, 2024, FMN secured 98.67percent approval for the buyout price of N86 per share, following a highly charged Court-Ordered Meeting (COM) earlier in the day.
The buyout scheme, which had initially sparked concern and demands for a higher buyout price from the minority shareholders, saw tensions rise before the resolution was passed.
The shareholders, expressing heightened concern, sought to secure a more favourable offer, fearing that their interests would be sidelined.
However, the resolution took a dramatic turn when the chairman of the meeting, Mr. Paul Gbededo, called on the majority shareholders from Excelsior Shipping Company to address these concerns.
In a powerful address, the Chairman of FMN’s Board of Directors, Mr. John G. Coumantaros, soothed the anxious shareholders by reaffirming the company’s deep commitment to Nigeria and its growth.
Mr. Coumantaros recounted the origins of FMN, which was founded by his late father, Mr. George S. Coumantaros, in the 1960s.
He highlighted the deep connection between the company and the Nigerian spirit, noting that FMN’s journey from a single milling company to a conglomerate with over 22 subsidiaries was fueled by an enduring passion for the Nigerian economy.
To further allay concerns, Mr. Coumantaros made a bold promise: “For your loyalty, we will increase the per-share value to N86 per share, and to reiterate, FMN will not leave Nigeria. FMN and Nigeria are inextricably bound together, with Nigeria positioned as the headquarters of our pan-African growth story and the centre of excellence as we deepen investment in our different verticals.”
The company intends to capitalise on the opportunities provided by the African Continental Free Trade Area (AfCFTA), starting with West Africa, to boost its export capacity and contribute significantly to Nigeria’s foreign exchange reserves.
In the aftermath of the vote, FMN’s board expressed their satisfaction with the outcome, acknowledging the unwavering loyalty of their shareholders and reinforcing the company’s long-term commitment to Nigeria’s development.
