Flour Mills of Nigeria (FMN) Plc has registered a shelf fund raising programme with the Securities and Exchange Commission, SEC, to raise up to N40 billion in equity funds over the next three years.
Flour Mills of Nigeria (FMN) Plc Chairman, John Coumantaros, who confirmed the approval of the fund raising by the apex capital market regulator, said the board of directors had decided to raise the new equity funds in tranches.
Flour Mills plans to raise the new equity funds through a rights issue, which will proportionately allot shares to shareholders on the basis of their shareholdings as at a pre-determined date. Shareholders had at an extraordinary general meeting in 2015 authorised the directors to raise up to N40billion of additional equity funds a rights issue.
Coumantaros said the board of directors would watch the capital market condition to determine the appropriate time to launch the first tranche of the new supplementary issue.
“We will continue to assess the economic climate to determine the most appropriate time to launch the first tranche,”Coumantaros said.
Reviewing the operations and outlook of the group, Coumantaros noted that though the operating environment has been tough and challenging, the group can look to the future with confidence that its prospects are promising and bright while the fundamentals are strong.
According to him, the group sees opportunities in the challenges and it is determined to explore them in the most profitable but sustainable manner.
“FMN is determined to continue to feed the nation every day. We shall keep maintaining our wide portfolio of high quality consumer food options and step up our input of locally sourced raw materials thereby supporting the livelihood of Nigerian farmers and Nigerian businesses,” Coumantaros said.
He added that the group would continue to invest in growing portfolio of localised products in support of the nation’s economy.