Flour Mills of Nigeria set for ownership transition as John Coumantaros aims for full control
NIGERIA – Flour Mills of Nigeria Plc (FMN), a leading agro-allied company, is on the verge of a significant ownership transition that may see John Coumantaros, the Greek-American heir of the company’s late founder, gain full control.
On October 2, 2024, FMN communicated its intent to the Nigerian Exchange regarding the acquisition plan initiated by Excelsior Shipping Company, the parent company controlled by John Coumantaros.
The Securities and Exchange Commission has already approved this transaction, allowing FMN to proceed with a statutory meeting scheduled for November 14.
This meeting will enable minority shareholders to vote on whether to sell their stakes at an offered price of N70 per share (US$0.043), 26.2% above the stock’s opening price on the day of announcement.
The company, which has evolved from a modest flour milling operation into a diversified conglomerate with an annual turnover of approximately N2.3 trillion (US$1.42B), is set to acquire the remaining 37.7% minority shares held by individual and institutional investors.
Founded in 1960 by George Coumantaros, FMN began as Nigeria’s first wheat mill and has since expanded its operations across West Africa, including Liberia.
The late Coumantaros envisioned a single-product business that has now diversified into various sectors such as logistics, real estate, power generation, and agribusiness.
Today, FMN’s assets are valued at around N1.48 trillion (US$913M), reflecting its growth trajectory over the past six decades.
FMN has reported robust financial health, with a remarkable 67.23% increase in revenue for Q1 2024, totaling N763.2 billion (US$460.1 million) compared to N456.4 billion (US$279.3 million) in the previous year.
FMN aims to raise US$120 million in capital pending shareholder approval at the upcoming AGM as part of its strategy to enhance operational efficiency and streamline its business model.
Strategic Vision
The restructuring is seen as essential for FMN’s ambition to become a Pan-African leader in food production and security.
John Coumantaros emphasized that this move aligns with Nigeria’s economic reforms, which aim to diversify the economy and enhance food security across Africa.
The company’s leadership has reassured stakeholders that this transition will reinforce its commitment to local industry while expanding its influence throughout the continent.
“The Scheme is also subject to the approval of the shareholders of Flour Mills at the Court-Ordered Meeting as well as the sanction of the Federal High Court,” the food company said in the filing.
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