Shareholders of Flour Mills of Nigeria Plc (FMN) have endorsed the company’s bid to merge five of its subsidiaries with its holding company.
The company 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.
It 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 55th annual general meeting held in Lagos recently, the Chairman of Flour Mills, John Coumantaros, assured shareholders of improved benefits from the merger.
The company’s results showed a profit after tax of N8.5 billion in its 2015 results, compared with N5.4 billion in 2014.