Flour Mills gains shareholder approval for buyout deal

Omokolade Ajayi -
Key Points
  • Flour Mills of Nigeria secures 98.67% minority shareholder approval for a buyout at N86 per share, advancing its ownership consolidation strategy.
  • The buyout is part of Flour Mills' strategy to consolidate ownership under majority stakeholders, addressing valuation fairness concerns.
  • Flour Mills saw a 75.98% revenue increase to N1.7 trillion ($1.01 billion) in H1 2025, with plans to invest $1 billion in growth.

Flour Mills of Nigeria Plc, a leading agro-allied group chaired by Greek multimillionaire John Coumantaros, has secured shareholder approval for a minority buyout scheme proposed by its majority stakeholder, Excelsior Shipping Company-linked to its chairman.

The move follows a resolution approved by the Federal High Court, clearing the path for the company’s long-discussed acquisition strategy, which was first unveiled on Sept. 24.

During the company’s 64th Annual General Meeting (AGM) at Lagos’ Balmoral Convention Centre, FMN revealed that 98.67 percent of minority shareholders approved the buyout offer at an enhanced price of N86 ($0.05) per share.

Path to consolidation

The move marks a pivotal step in FMN’s strategy to consolidate ownership under its majority stakeholders while addressing longstanding concerns over valuation fairness. Discussions at the AGM reflected the emotional connection many shareholders have with the company’s legacy and its role in Nigeria’s economic fabric.

At the AGM, Chairman John G. Coumantaros highlighted FMN’s deep roots in Nigeria’s history and its pivotal role in the economy. He paid tribute to his father, George S. Coumantaros, who founded the company in the 1960s, and reaffirmed FMN’s commitment to Nigeria’s growth and resilience.

“FMN will not leave Nigeria. FMN and Nigeria are inextricably bound, with Nigeria positioned as the headquarters of our Pan-African growth story,” Coumantaros affirmed. His announcement of the revised buyout price not only quelled shareholder concerns but also drew widespread applause, securing support for the proposal.

Flour Mills’ resilient growth

Flour Mills, a leader in Nigeria’s food and agro-allied industry, thrives under the leadership of Chairman John Coumantaros, building on the legacy of its founder, the late George Coumantaros.

Under John Coumantaros, who owns a 63.34-percent stake in Flour Mills through Excelsior Shipping, the company has established itself as a dominant force in the sector.

The group’s recent half-year 2025 (H1 2025) results underscore its resilience. For the period ending Sept. 30, 2024, Flour Mills reported a 75.98 percent surge in revenue, reaching N1.7 trillion ($1.01 billion) compared to N964.6 billion ($576.26 million) during the same period last year.

Looking ahead, Flour Mills plans to invest $1 billion over the next four years, reinforcing its commitment to Nigeria while executing a strategic restructuring plan designed to unlock further growth and operational efficiency.