The Nigerian Exchange Group (NGX) has officially delisted the shares of Flour Mills of Nigeria Plc, marking the company’s definitive withdrawal from the nation’s capital market.
This move concludes a significant chapter in the history of one of Nigeria’s leading food manufacturing firms.
In a market bulletin released to its dealing member firms at the close of business on Monday, the NGX confirmed the removal of Flour Mills of Nigeria Plc’s shares from its daily official list, effective December 30. The delisting follows the Exchange’s approval of the company’s application to withdraw its entire share capital from public trading.
The bulletin, titled “Delisting of the Shares of Flour Mills of Nigeria Plc,” referenced an earlier notice dated December 16, in which the NGX had suspended trading on the company’s securities.
The suspension aimed to ensure an orderly delisting process, curbing any further trading activities in preparation for the company’s exit.
This strategic move by Flour Mills was initiated after its majority shareholder, Excelsior Shipping Company Limited, extended an offer to acquire the shares held by minority stakeholders.
The transaction, structured under a scheme of arrangement in line with Section 715 of the Companies and Allied Matters Act 2020, enabled Excelsior to consolidate full ownership of the company.
Under the terms of the buyout, Excelsior acquired the remaining shares not already in its possession, offering minority shareholders a total exit package valued at ₦105.2 billion.
As of September 24, 2024, the core investor controlled a 63% stake in Flour Mills, equivalent to 2.59 billion shares valued at ₦142.8 billion.
The transaction received final approval from the Securities and Exchange Commission (SEC), culminating in Flour Mills’ removal from the NGX’s daily official list.
The delisting not only signifies that Flour Mills’ shares will no longer be publicly traded but also impacts the NGX’s market capitalization, which will shrink by the value of the delisted company’s equity.
This development underscores the shifting dynamics within Nigeria’s capital markets, as Flour Mills of Nigeria embarks on a new chapter as a wholly private entity under Excelsior’s full control.
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