Flour Mills of Nigeria (FMN) has announced that it has signed a deal to acquire a 71.69 percent equity in Honeywell Group Limited (HGL), leafing up to an enterprise value of N80 billion.
The company also plans to acquire FBN Holdings’ 5.06 percent equity in Honeywell Flour Mills.
Flour Mills made the announcements in separate statements issued on the Nigerian Exchange Limited (NGX) on Monday.
The company stated that it signed the two agreements concurrently to “create a strong National Champion in Nigeria to further enhance food security.”
It however noted that the acquisitions are still going through necessary regulatory validation.
The two deals will culminate in holding a circa 76.75% equity interest in Honeywell Flour Mills.
“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 company added.
Omoboyede Olusanya, the group managing director of FMN, said that it was in accordance with the company’s goal to be a national leader in the food and agro-allied industries.
“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,” Olusanya said.
Obafemi Otudeko, managing director, Honeywell Group Limited, said that the transaction was in line with the company’s goal and objectives to increase production capacity and widen its investment horizon.
“Today’s announcement is in line with the evolution of Honeywell Group and our vision of creating value that transcends generations,” Otudeko said.
“For over two decades, we have supported Honeywell Flour Mills to build a strong business with a production capacity of 835,000 metric tonnes of food per annum.
“Following the transaction, Honeywell Group will be strongly positioned to consolidate and expand its investment activities, including as a partner of choice for investors in key growth sectors.”
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