Flour Mills of Nigeria Plc (FMN) yesterday assured its stakeholders that the recent announcement by the group to assume the status of majority shareholder of Honeywell Flour Mills Plc (HFMP) had been made after having carried out the necessary due diligence and obtained appropriate legal advice.
The company said in a statement that its agreement with HFMP does not violate any court order in effect in third party cases, saying that such assurance has become necessary in view of the publication titled “Ecobonk warns against l ‘Acquisition of Honeywell Flour Plc, Alleges company faces liquidation proceedings’.
âStakeholders are therefore invited to maintain their confidence in the management of FMN, whose actions are guided by global best practices, as we work diligently to maintain the Group’s solid reputation as one of the main and one of Nigeria’s oldest agribusiness companies.
FMN had revealed on Monday that it had reached an agreement for the proposed merger of FMN through its subsidiaries and HFMP, for a total enterprise value of 80 billion naira. This combination is expected to create a more resilient national champion in the Nigerian food industry, ensuring long-term job creation and preservation.
The company said the biggest expected benefits of the suit include increased efforts to meet national food security goals and capitalize on opportunities arising from the African Continental Free Trade Area (AfCFTA).