Nigeria: Acquisition of Majority Stake in Honeywell Not Breach of Court Order - Flour Mills

25 November 2021

The announcement came in response to reports that Ecobank warned Flour Mills against the acquisition of Honeywell, because the company is facing winding up proceedings.

Flour Mills of Nigeria Plc said its Monday's declaration to assume majority stakeholder position in rival Honeywell Flour Mills was made following "necessary due diligence and obtaining appropriate legal guidance."

The flour and pasta maker stated in a notification obtained from the Nigerian Exchange Limited on Thursday that the pact is not in violation of any subsisting court order in issues pertaining to any third party.

It said the announcement came in response to reports saying that Ecobank has warned Flour Mills against the acquisition of Honeywell, because the company is facing winding up proceedings.

"Stakeholders are therefore urged to maintain their trust in FMN's management whose actions are guided by global best practices, as we work diligently to maintain the group's sterling reputation as one of Nigeria's leading and oldest agro-allied companies," Flour Mills said.

On Monday, the firm said it has closed a deal with Honeywell to buy out a 71.69 per cent interest in the latter and FBN Holdings' 5.06 per cent stake in the entity all summing up to 76.75 per cent.

Flour Mills said in an earlier regulatory filing it has an understanding for the proposed combination of FMN through its affiliates and Honeywell, for a total enterprise value of N80 billion.

In a separate statement, Honeywell said "it is pertinent to set the record straight that there is no winding up petition currently pending against HFMP in any court in Nigeria.

"There is no pending court order restraining trading in the shares of HFMP or inhibiting HFMP or its owners from dealing in its assets."

"The issue as to whether HFMP is indebted to Ecobank is still before the courts and the final decision remains the exclusive preserve of the courts."

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