Flour Mills of Nigeria officially delisted from Nigerian Exchange

NIGERIA – The Nigerian Exchange (NGX) has announced the delisting of Flour Mills of Nigeria Plc from its Daily Official List, effective December 30, 2024.

This development follows the exchange’s earlier announcement on December 16, 2024, which notified investors of the suspension of trading in the company’s shares. According to the NGX, the suspension was a preparatory measure for the eventual delisting.

In a statement included in its weekly market bulletin, the NGX reiterated the rationale behind the action, referencing its earlier communication with the market.

The delisting stemmed from the company’s application to remove its entire issued share capital from the exchange, a move approved by the relevant regulatory authorities. The NGX confirmed that Flour Mills of Nigeria’s entire issued share capital had been delisted as of December 30, signaling the culmination of the process.

This decision traces back to September 24, 2024, when Flour Mills of Nigeria announced that its majority shareholder, Excelsior Shipping Company Limited, intended to acquire all shares held by minority shareholders.

The proposal aimed to consolidate ownership, effectively transitioning the company into private hands.

The move was conducted in line with Section 715 of the Companies and Allied Matters Act (CAMA) 2020 and had already received a “no objection” ruling from the Securities and Exchange Commission (SEC), clearing a key regulatory hurdle.

A court order further clarified the process, specifying that all remaining shares not held by Excelsior would be transferred to it and its wholly owned Nigerian subsidiary, Greywise Investment Solutions Limited.

The delisting proposal gained traction after being approved at a court-ordered shareholders’ meeting on November 14, 2024. This approval was promptly communicated to the NGX, with Flour Mills of Nigeria formally announcing the outcome the following day.

To compensate shareholders, Excelsior Shipping Company Limited offered 86 Naira per share, US$0.11, for the transfer of ownership. On its last trading day, December 13, 2024, the company’s stock closed at 81.80 Naira, or US$0.10, having achieved a remarkable year-to-date performance of 147.50% and recording a monthly trading volume of 11 million shares.

The delisting process also resulted in the dematerialization of all share certificates associated with Flour Mills of Nigeria.

The company’s board of directors has been tasked with ensuring compliance with any modifications or actions required by the Federal High Court or the Securities and Exchange Commission to finalize the transition.

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