Shareholders Massively Vote in Favor of FMN’s Minority Shares Buyout Scheme

On November 14, 2024, Flour Mills of Nigeria (FMN) held its 64th Annual General Meeting (AGM) at the Balmoral Convention Centre, Federal Palace Hotel, Lagos. This year’s AGM was significant, as it coincided with a Court-Ordered Meeting (COM) directed by the Federal High Court in Lagos. The purpose? To deliberate and vote on a minority shareholders’ buyout scheme proposed by majority shareholders.

The COM, initially routine in its proceedings, evolved into a spirited negotiation forum. Minority shareholders, aware of the stakes, challenged the initial buyout price, advocating for an increase. The discussions turned emotional, fueled by fears and misconceptions, particularly the concern that FMN might exit Nigeria following the buyout. These anxieties underscored the deep ties shareholders felt toward the company’s legacy and its role in Nigeria’s economic landscape.

Leadership That Calmed the Storm
Amid growing tension, the Chairman of the meeting, Mr. Paul Gbededo, invited representatives of the majority shareholder, Excelsior Shipping Company, to address the concerns. It was the voice of Mr. John G. Coumantaros, FMN’s Chairman of the Board, that ultimately turned the tide.

In a heartfelt and compelling address, Mr. Coumantaros connected with shareholders by recounting the legacy of his late father, Mr. George S. Coumantaros, FMN’s founder. He highlighted the elder Coumantaros’ admiration for Nigeria’s resilient and ambitious spirit, which inspired him to establish the company in the 1960s. From its humble beginnings as a single flour milling operation, FMN has grown into a diversified group with 22 subsidiaries, committed to food security and job creation.

“My late father started this company out of passion for Nigeria’s can-do spirit,” Mr. Coumantaros said. “This passion drives me today, to ensure that FMN continues to grow as an organization that provides jobs, feeds the nation, and enriches lives.”

A Gesture of Commitment
To assuage shareholders’ fears, Mr. Coumantaros announced an increase in the buyout price to N86 per share. He also reaffirmed FMN’s dedication to Nigeria, saying:

“FMN and Nigeria are inextricably bound together, with Nigeria positioned as the headquarters of our Pan-African growth story.”

His words had an immediate impact. The audience, once driven by skepticism, recognized the Group’s patriotic commitment. By the end of the meeting, 98.67% of minority shareholders voted in favor of the buyout, marking a milestone for FMN.

FMN: A Legacy of Growth and Ambition
The meeting also spotlighted FMN’s ambitious plans for the future. With a $1 billion investment strategy over the next four years, the Group aims to expand its footprint across Africa, leveraging opportunities presented by the African Continental Free Trade Agreement (AfCFTA). This expansion will not only boost FMN’s export capabilities but also contribute to Nigeria’s foreign exchange flows and export potential.

More Than a Company – A National Treasure
FMN’s 64-year journey mirrors Nigeria’s growth and resilience. Sharing the nation’s colors of green and white, FMN stands as a symbol of unity and commitment to food security. As the Group ventures into Pan-African diversification, it remains steadfast in its mission to serve Nigeria’s people.

With unwavering support from shareholders and a clear vision for the future, FMN is poised to elevate Nigeria’s position as a leader in continental business. As Nigeria’s own, FMN’s success is a shared victory for all.

Flour Mills of Nigeria Plc (FMN): A Background Overview

Flour Mills of Nigeria Plc (FMN), established in 1960, is one of Nigeria’s largest food and agro-allied companies. Founded by George S. Coumantaros, FMN began as a single flour milling operation and has since evolved into a diversified conglomerate with over 22 subsidiaries.

FMN’s operations span several sectors:

• Food Production: The company is renowned for its “Golden Penny” brand, offering a wide array of products, including flour, pasta, noodles, and edible oils.
• Agro-Allied Activities: FMN engages in large-scale farming, cultivating essential crops such as maize, cassava, soya, sugarcane, and oil palm. It also produces fertilizers, livestock feeds, and poultry products, supporting Nigeria’s agricultural sector.
• Support Services: The company operates key terminals at Apapa Port, provides logistics services, and is involved in packaging through its subsidiary specializing in bag manufacturing.
• Sugar Processing: FMN has a robust presence in sugar cultivation, refining, and marketing, contributing significantly to Nigeria’s industrial and food supply chain.

Over the years, FMN has achieved notable milestones, including acquiring a majority stake in Honeywell Flour Mills Plc, further cementing its leadership in the Nigerian food industry. The company employs over 12,000 people, reflecting its significant role in Nigeria’s economy and commitment to creating job opportunities.

FMN is also pursuing an ambitious $1 billion investment plan to expand its operations across Africa, leveraging the opportunities provided by the African Continental Free Trade Agreement. The company remains dedicated to food security, economic development, and positioning Nigeria as a continental business leader.