Flour Mills to acquire 71.69% stake -- equity of FBN Holdings in Honeywell

Flour Mills to acquire 71.69% stake — equity of FBN Holdings in Honeywell

November 22

13:41 2021

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Flour Mills of Nigeria (FMN) says it has signed agreements to acquire a 71.69% stake in Honeywell Group Limited (HGL), culminating in an enterprise value of N80 billion.

The company also aims to buy 5.06 percent FBN Holdings equity in Honeywell Flour Mills.

Flour Mills announced this in separate statements released on the Nigerian Exchange Limited (NGX) on Monday.

The company said it signed both agreements simultaneously to “create a strong National Champion in Nigeria to further enhance food security.”

It added that the acquisitions are still undergoing necessary regulatory approvals.

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.”