Flour Mills of Nigeria Plc
Flour Mills of Nigeria Plc has secured an “approval in principle” from the Securities and Exchange Commission (SEC) to buy Nigerian Bag Manufacturing Company (BAGCO) Plc.
To enhance the relationship, BAGCO will supply bags used by Flour Mills for its products, which include cement, flour, and sugar from next month, when it starts production at its 750,000-metric ton sugar refinery in Lagos.
In a statement published Tuesday on the website of the Nigerian Stock Exchange (NSE), the company said it would recommend to its shareholders an offer of 25 BAGCO shares in exchange for one share of Flour Mills Plc.
Alternatively, Flour Mill said it would propose a cash consideration of N2.75 for each BAGCO share, a 39 per cent premium to BAGCO’s closing share price of N1.98.
According to the statement, the proposals were subject to be approved by regulatory authorities as well as by the shareholders of both companies.
Meanwhile, at the close of trading yesterday, Flour Mills gained N2.95 or 4.7 per cent to close at N66.25, taking its rise this year to 1.2 per cent, while BAGCO gained 15 kobo or 7 per cent to close at N2.26, taking its gain this year to 33 per cent, compared with a gain of 27 per cent in the NSE’s All- Share Index or ASI.
The market returned to positive territory yesterday with a surge in market indices as investors bought 397.04 million shares worth N2.48 billion exchanged in 4,191 deals compared to 194.93 million ordinary shares worth N2.2 billion exchanged in 3,758 deals the previous day.
The NSE ASI appreciated by 0.34 per cent to close at 26,358.73 points from 26,267.57 points the previous day. Also, the market capitalisation of listed equities increased by N29 billion to N8.399 trillion from N8.370 trillion.
The price movement chart of the NSE displayed a total of 22 stocks that recorded gains as against 24 on the losers table.
UACN Plc led on the gainers table with a gain of N2.98 to close at N42.98 per share. On the other hand Academy Press Plc led on the losers table with a loss of 30 kobo to close at N2.70 per share.