The shareholders of Flour Mills of Nigeria, a leading food and agro-allied company, have approved the transition of the company’s BAGCO division into a 100 per cent subsidiary. This will see BAGCO, a manufacturer of bags and packaging materials, become a fully owned entity of Flour Mills.
The transition was approved by the shareholders at the company’s Annual General Meeting, with the aim of improving efficiency and streamlining operations. The move is also expected to support Flour Mills’ growth strategy, which focuses on building long-term shareholder value and delivering value-added products to its customers.
At the AGM, shareholders also approved the company’s audited financial statements for the year ended March 31, 2023, as well as a final dividend payment of N2.25 per 50 Kobo ordinary shares. In addition, a number of the company’s directors were re-elected to the board, including Muhammad Ahmad, Juliet Anammah, Paul Gbedebo, Yunus Saliu, and Folarin Williams.
In a corporate notice filed with the Nigerian Exchange Limited (NGX), Flour Mills stated that the carving out of BAGCO into a 100 per cent subsidiary was one of the resolutions approved at the AGM. The notice also stated that shareholders were given the opportunity to consider the divestment of up to 60 per cent equity in BAGCO. The company stated that this move would allow it to focus on its core businesses, while also providing the opportunity for new investors to participate in the growth of BAGCO.
The notice further stated that the transition was subject to regulatory approvals and that the timeline for implementation would be announced in due course.
In late 2012, the Securities and Exchange Commission (SEC) in Nigeria approved the merger of BAGCO with Flour Mills of Nigeria (FMN). As a result of the merger, all assets, liabilities, and undertakings of BAGCO and BAGCO-North were transferred to FMN, making BAGCO a division of FMN.