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FMN Plc to merge its five subsidiaries

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Shareholders of Flour Mills, FMN Plc have approved  proposal of the Board of Director's restructuring programme which involves the merging of the company’s five subsidiaries with its holding company under a Scheme of External Restructuring.

The shareholders at a court ordered meeting sanctioned the proposal, and urged the board to ensure that the restructing will bring gains to the entire group.

Among the proposals endorsed at the meeting included: “That all the assets, liabilities and undertakings of the fertilizer business of Flour Mills including but not limited to real property, equipment and machinery, plant, fixtures and fittings, motor vehicles, businesses, intellectual property rights, licenses, permits, credits and allowances be transferred to Golden Fertilizer; that all legal proceedings, claims and litigation matters pertaining to the fertilizer business of Flour Mills either pending or contemplated by or against Flour Mills be continued by or against Golden Fertilizer after the Scheme is sanctioned by the Court.”

The Chairman, Golden Fertilizer Company Limited, Paul Miyonmide Gbededo thanked the shareholders for their coperation and promised maximum return to their investment.
According to him,  the restructuring is needed to smoothen operations, minimize cost, improve profitability and  ensure efficiency.

He noted that the exercise when completed will enable each of the value chain in FMN Group to target appropriate investors and markets, be attracted to the specific businesses,  increase the capital allocation capacity and flexibility of the Flour Mills Group, as each group will be able to attract new capital targeted at the specific opportunities of the respective businesses.

Gbededo also stressed that better knowledge of  independent and related groups by analysts and investors which will in turn create value for the organisation.

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