Flour Mills of Nigeria Plc, a leading agro-allied firm chaired by Greek multimillionaire John Coumantaros, is set for a massive reorganization as its majority shareholder, Excelsior Shipping Company, linked to the chairman, seeks to purchase all remaining shares owned by minority investors. This strategic action is intended to consolidate control over the company.
The purchase proposal, which was announced on September 24 via the Nigerian Exchange (NGX) platform, has already acquired a “no objection” verdict from the Securities and Exchange Commission (SEC), a crucial regulatory milestone that clears the way for the transaction.
Under the Scheme of Arrangement, as outlined in Section 715 of the Companies and Allied Matters Act 2020, Excelsior will acquire all outstanding shares of Flour Mills that are not currently under its control. Flour Mills’ board of directors has advised this step, with the goal of streamlining operations and improving alignment among its multiple companies for enhanced performance, as well as attracting investment to fuel long-term growth.
The firm has obtained a Federal High Court order to host a Court-Ordered Meeting on November 14, 2024, where shareholders will vote on the proposed scheme. The outcome of this meeting, together with the court’s approval, will be critical to the transaction’s completion. A upcoming Scheme Document will provide shareholders with detailed details on the scheme’s terms and conditions.
Flour Mills, a leader in Nigeria’s food and agro-allied industries, owes its success to the visionary leadership of its founder, the late George Coumantaros, and his son, John Coumantaros, who now serves as chairman. Under their leadership, the company has emerged as a leading player in the field.
John Coumantaros is one of the NGX’s wealthiest investors, with a 63.34 percent interest in Flour Mills through Excelsior Shipping. In the first quarter of 2024, Flour Mills’ revenue increased by 67.23 percent to N763.2 billion ($460.1 million) from N456.4 billion ($279.3 million) the previous year.
Flour Mills reinforced its commitment to local sourcing in 2023, giving N649.9 billion ($842 million) to local suppliers, up from N552.5 billion ($715.48 million) in 2021 as part of their backward integration strategy. This demonstrates its commitment to boosting Nigeria’s agriculture value chain and its critical role in the country’s economic development.
