Flour Mill of Nigeria announces equity raising through rights issue, medium-term notes

Flour Mills of Nigeria Plc has announced intent to raise equity through the issuance of rights and medium-term notes.

In a statement to the Nigeria Stock Exchange, the company indicated that its board of directors, has given approval in principle to its plans to commence with activities to raise additional funds through a Rights Issue and medium-term notes.

The company equally disclosed that it had registered a shelf fund raising program in 2016 with the Securities and Exchange Commission to raise up to N40 billion in equity funds through a rights issue and that “plans are now in progress towards the possibility of commencing with the first tranche. The exact amount to be raised will be confirmed by the board of Directors in due course.”

In addition to that the company is planning to raise N70 billion through medium-term notes. It affirms that it has commenced discussions with stakeholders – financial advisers, legal advisers and issuing houses to determine the right time and cost for issuing such financial instruments, which will eventually be duly registered with the proper financial bodies.