Flour Mills of Nigeria, a food and agro-allied corporation, has its shareholders’ approval to convert a division of BAGCO into a fully owned subsidiary.
The Punch reported that this was one of the special resolutions that was approved during the Lagos-based company’s annual general meeting.
By a show of hands, the shareholders decided to create a subsidiary out of the BAGCO firm and FMN.
“To carve out the business of BAGCO from that of Flour Mills of Nigeria into a 100% owned subsidiary of Flour Mills of Nigeria Plc,” according to a corporate notice filed with the Nigerian Exchange Limited on the conclusion of the AGM.
“Upon consideration given to shareholders, divest up to 60 per cent equity of Flour Mills of Nigeria in BAGCO.”
In late 2012, the Securities and Exchange Commission gave its approval for BAGCO and FMN to consolidate. Following the merger, Flour Mills acquired all of the assets, liabilities, and undertakings of BAGCO and BAGCO-North.
The audited financial account for the year ending March 31, 2023, as well as the final dividend payment of N2.25 for each of the 50 Kobo ordinary shares owned, were also approved by the shareholders.
A few of the directors of the business were re-elected. Paul Gbedebo, Juliet Anammah, Yunus Saliu, Muhammad Ahmad, and Folarin Williams are among them.
Meanwhile, a Cordros Securities investment update stated that FMN’s profitability will be impacted by the expected high cost of operations and foreign exchange issues brought on by the naira’s depreciation.
The research stated, “We believe the company’s performance will be inhibited by a higher costs outlook in H2-24 and the sustained impact of higher FX losses on its net operating income, even though we expect Flour Mill’s revenue to sustain its stellar momentum.”