BREAKING: Flour Mills acquires 76.8 percent stake in Otudeko’s Honeywell Flour

Nigeria’s biggest flour-maker Flour Mills of Nigeria Plc Monday said it has brokered a deal to buy out the majority equity interest in rival Honeywell Flour Mills, majority owned by billionaire and immediate past chair of FBN Holdings Oba Otudeko.

The agreement enables Flour Mills to purchase 71.69 per cent stake in Honeywell, while a separate pact with FBN Holdings Group allows the miller to acquire the financial services group’s stake of 5.06 per cent in Honeywell, bringing its consolidated holding in Honeywell to 76.75 per cent, according to a regulatory filing at the Nigerian Exchange Limited on Monday seen by INTEL REGION

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That could mean Flour Mills will be taking over about 6.09 billion units of Honeywell’s 7.93 billion ordinary shares, priced at an opening price of N3.39 per unit on Monday.

But the disposal of the 71.69 per cent stake by Honeywell will be conducted on the basis of an enterprise value N80 billion.

The deal marks the third major merger and acquisition transaction involving a quoted company this month, following Rainoil’s buyout of more than 60 per cent stake in Eternal Oil and Ardova’s takeover of Enyo Oil.

“As a result, we will have a better-rounded and more comprehensive skill set available to us as a combined diversified food business, thus enabling us to better serve our consumers, customers and other stakeholders, whilst providing employees with access to broader opportunities.”

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