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Rights Issue: Flour Mills Nigeria Offers Shareholders 20% Discount

By BusinessNews Staff on September 14, 2011

To encourage its shareholders to invest in its upcoming rights issue, the management of Flour Mills of Nigeria Plc, has resolved to sell its shares at N62 per share indicating a discount of 20 per cent on the N78.00 closing price as at Monday.

The company had recently announced its decision to return to the capital market raise about N28 billion through a rights issue, having concluded the first tranche of its N70 billion corporate bond where it raked in N37 billion.

He disclosed that the company was in the process of completing its sugar refinery and its power plant where it planned to sell its excess to the ministry of power.

“Our refinery will be completed and commissioned by the third quarter of 2012 and our requirement for power on a daily basis is 24 megawatts and our power plant is expected to produce over 60 mega. As a result, we are incorporating a new company called Golden Penny Power Company Limited.

We have met with the minister of power to see how we can put the excess to the national grid and he has assured us that every watt of electricity we provide will be paid for,” he said.

The company, he added, remained the second largest mill in the world adding that its new investment in the mill would provide additional 2,750MT per 24 hours of wheat processing.

Ukpabi debunked claims that the company was in the process of listing one of his subsidiary company, UNICEM Limited, on the Nigerian Stock Exchange (NSE) adding that the company was joint owned by HOLCEM and Lafarge.

Flour Mills, he said, was in the process of streamlining all its subsidiary companies to make them division of the parent company.

Flour Mills