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Flour Mills raises 35 bln naira in rights issue

By on February 17, 2012

Flour Mills of Nigeria said on Thursday it successfully raised 34.97 billion naira ($220.80 million) in a rights issue of shares.

Shares in Flour Mills closed down 2.73 percent at 57.54 naira per share.

The rights issue was meant to raise 28.24 billion through the sale of 455.56 milion ordinary shares at 62 naira per share, but shareholders bought 564.04 million shares in the offer, the company said.

Proceeds from the issue are expected to be used primarily to finance the company’s food and cement business expansion, Flour Mill treasury director, Vlassis Liakouris told Reuters in September.

Flour Mills in December raised 37.5 billion naira in five-year bonds, the first tranche of a 70 billion naira programme, Nigeria’s first corporate debt issue outside the banking sector in recent years.