Shareholders of Flour Mills of Nigeria Plc have endorsed the company’s bid to merge five of its subsidiaries with its holding company. It is said that the company’s results showed a profit in 2015 thanks to the merger.
Flour Mills of Nigeria had obtained the approval-in-principle of the Securities and Exchange Commission (SEC) to merge five of its wholly owned subsidiaries - Golden Noodles Nigeria Limited, Golden Transport Company Limited, FMN Cement Industries (Nigeria) Limited, New Horizon Flour Mills Limited and Quilvest Properties Limited with Flour Mills of Nigeria Plc. According to the news of thisdailylive.com, its management explained that the restructuring resulted from the need to streamline operations, reduce administrative costs, improve operating efficiency and derive full benefits of synergy in line with the company's long term strategic thrust.
Speaking at its annual general meeting, the Chairman of Flour Mills, John Coumantaros, assured shareholders of improved benefits from the merger. The company’s results showed a profit of N8.5 billion in its 2015 results, compared with 2014. Coumantaros, however, pointed out that the later stage of the company’s strategic expansion unfortunately coincided with the sudden slump in global crude oil prices. This, he stated resulted in major devaluation of the naira leading to increases in import costs and financial charges. The chairman added: “We shall strive to strengthen our core food business and, in tandem with our strategic business thrust and in alignment with government’s vision of developing the Agricultural sector, we are determined to ensure the success of our agro-allied investments; and in doing so, maximise local content in our final products and derive group synergies.”