Nigerian multimillionaire Obafoluke Otudeko and his son Obafemi will earn $1.02 million (N414 million) in dividends from their stakes in Honeywell Flour Mill Plc.
Otudeko founded the integrated flour milling company in 1985. At its inception, the company was called Gateway Honeywell Flour Mills Limited.
Its recent financial statement declared profits of $2.7 million (N1.1 billion) for 2020, or 76 percent more than last year.
This impressive performance made the company’s board recommend a dividend of $0.0002 (7 kobo) per share payable on Sept. 23 on all the company’s issued shares.
The founder and chairman of Honeywell Group, Otudeko is a majority shareholder of Honeywell Flour Mill.
His 5,294,363,565 shares in Honeywell are valued at $15.6 million (N6.5 billion) and represent about 70 percent of the company’s issued shares.
His son Obafemi holds 618,000,000 issued shares in the milling company, which is valued at $1.7 million (N754 million).
Obafemi and his father hold their shares indirectly through Siloam Global Services Limited.
Their joint stake in the company, which is valued at $17.5 million (N7.2 billion), qualifies them to receive a total dividend of about $1.02 million.
Obafemi is expected to earn a dividend of $104,755 (N43.3 million), while his father is on course to pocket $1 million (N370 million) from the miller.
Honeywell Flour Mill
Honeywell has a wheat storage capacity of 72,900 metric tonnes. Its finished products warehouse can hold about 100,000 bags of 50 kilograms of flour.