Greek tycoon John Coumantaros secures approval to buy out minority stakeholders in Flour Mills of Nigeria

Timilehin Adejumobi -
Key Points
  • Flour Mills of Nigeria to restructure as Excelsior Shipping plans to acquire all minority shares, enhancing operational control and performance.
  • Securities and Exchange Commission approved the acquisition proposal, allowing Flour Mills to proceed with plans for shareholder voting on Nov. 14, 2024.
  • Flour Mills reported a 67.23% revenue increase in Q1 2024, underscoring its strong financial health and commitment to local sourcing and investment.

Flour Mills of Nigeria Plc, a leading agro-allied group chaired by Greek multimillionaire John Coumantaros, is poised for a major restructuring as its majority shareholder, Excelsior Shipping Company — linked to its chairman — seeks to acquire all remaining shares held by minority investors. This strategic move aims to consolidate control over the company.

The acquisition proposal, disclosed on Sept. 24 via the Nigerian Exchange (NGX) platform, has already received a “no objection” ruling from the Securities and Exchange Commission (SEC), a significant regulatory milestone that paves the way for the transaction.

Excelsior’s acquisition strategy

Under the Scheme of Arrangement, as detailed in Section 715 of the Companies and Allied Matters Act 2020, Excelsior will procure all outstanding shares of Flour Mills not currently under its control. The board of Flour Mills has recommended this move, aiming to streamline operations and enhance the alignment of its various entities for improved performance, while also attracting investment to support long-term growth.

To facilitate this process, the company has secured a Federal High Court order to convene a Court-Ordered Meeting on Nov. 14, 2024, during which shareholders will vote on the proposed scheme. The outcome of this meeting, along with the court's approval, will be crucial for the transaction's finalization. Shareholders will receive comprehensive details regarding the scheme's terms and conditions in a forthcoming Scheme Document.

Financial resilience and local impact

Flour Mills — a leader in Nigeria’s food and agro-allied industry — owes its esteemed position to the visionary leadership of its founder, the late George Coumantaros, and his son, John Coumantaros, who currently serves as chairman. Under their guidance, the company has established itself as a dominant force in the sector.

John Coumantaros, holding a 63.34-percent stake in Flour Mills through Excelsior Shipping, ranks among the wealthiest investors on the NGX. Flour Mills reported impressive financial results for the first quarter of 2024, with revenue soaring by 67.23 percent to N763.2 billion ($460.1 million), compared to N456.4 billion ($279.3 million) in the same period last year.

In 2023, Flour Mills reaffirmed its commitment to local sourcing, allocating N649.9 billion ($842 million) to local suppliers, an increase from N552.5 billion ($715.48 million) in 2021, as part of its backward integration strategy. This underscores its dedication to supporting the Nigerian agricultural value chain and its vital role in the nation's economic development.