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Brokers advise Honeywell on equity funding for N10bn project

By on June 6, 2014

Stockbrokers have advised the management of Honeywell Flour Mills Plc(HFMP) to access the capital market for funds to finance its N10 billion new agro-allied industrial complex located on the Lagos-Ibadan expressway.

Having completed the expansion of its Apapa, Lagos, production plant, HFMP is embarking on a new industry complex as part of efforts to realise its vision of becoming a leading flour milling and agro-allied company in Nigeria.

Speaking after a tour of HMFP’s factory at Apapa, the stockbrokers said the company should access the market for equity to fund the project, saying equity financing is the best way to grow business.

Mr. Sam Ndata of  Compass Investments & Securities Limited,  who spoke on behalf of the stockbrokers, said they were impressed with the enormous investments the company made in the Apapa factory, saying HFMP has proved to be a  force to reckon with in the industry it operates.
According to him,   the stockbroking community  will  support  the company to raise  enough funding for the new project, Addressing the brokers, the Managing Director, HFMP Mr. Lanre Jaiyeola,   said the  company has a very strong potential and a bright outlook.

He explained that the company has commenced the development of the new complex, which sits on a 62.8 hectare land.

He said it will be a cluster site for the production and processing of general food and agro-allied products with emphasis on manufacturing value-added human and animal food products leveraging backward integration for raw material procurement.

Jaiyeola said the  as advised by the brokers, the bulk of the money required for the project will be raised through equity, disclosing that talks have also commenced with financial institutions like the Bank of Industry on the financing of the project.
The MD said upon completion, HFMP would have increased its contribution to the country’s Gross Domestic Products (GDP) as the food village will open employment opportunities for several Nigerians.

He  listed the company’s  leading edge to include good leadership at the centre, strong and focused management team, professionalism, continuous training and re-training of staff, empowerment of people at all levels, value-adding strategies as well as strong emphasis on quality.

 

 

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