Flour Mills of Nigeria Plc, a Nigeria-based agro-allied group led by Greek multimillionaire businessman John Coumantaros, has received shareholder approval to raise N200 billion ($467 million) in additional capital.
The planned capital raise follows the acquisition of a 71.69-percent stake in Honeywell Flour Mills, another player in the agro-allied segment, and aligns with the company’s decision to launch a massive restructuring that could result in the unbundling of the component businesses and assets of one of Nigeria’s largest conglomerates.
In a regulatory filing, Flour Mills of Nigeria stated that the group’s shareholders had given the board of directors permission to restructure some of the group’s businesses and raise N200 billion ($467 million) in additional capital.
The company reported that its shareholders approved the separation of all the group’s production businesses and power assets as part of the planned restructuring at the 62nd annual general shareholders meeting, which took place on Sept. 7.
As a result, Flour Mills might decide to adopt a holding company structure, which will enable it to maximize the potential of its businesses and assets, while reducing the risk of consolidated liabilities and the rise in operating costs associated with its broad-based operations.
Flour Mills is one of Nigeria’s leading food and agro-allied groups. Since its inception in 1960, the business has evolved into a major player in Nigeria, led by the late George Coumantaros and his son, John.
John Coumantaros, the chairman of Flour Mills, controls a majority 63.34-percent share in the company valued at $209 million.
Following the approval of the management’s N2.15 ($0.0050) dividend payout for 2022 to shareholders, the Greek businessman received a payout of N5.58 billion ($13.45 million) in dividends thanks to his stake in the company.
When discussing the group’s plans for its 2023 fiscal year, Coumantaros revealed that the group intends to offset some of the challenges in its operating environment by continuing to focus on growing earnings and revenue through strategic investments in its operations.
“We are developing a flexible and agile route to market strategy by investing in expanding and improving our group-wide sales, marketing, and distribution capabilities,” Coumantaros said.
