Flour Mills of Nigeria Plc Proposed 1.48bn Rights Issue

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Kindly be informed that Flour Mills of Nigeria (FMN) Plc has kicked off its Rights Issue of 1,476,142,418 ordinary shares of 50 kobo each to existing shareholders at an offer price of N27.00 per share, on the basis of nine (9) new ordinary shares for every sixteen (16) ordinary shares held as at the close of business on Friday, December 8th, 2017.
The Rights Issue is aimed at raising a total of N40.00 billion in a bid to optimize the company’s balance sheet, repay part of its existing debt obligations, reduce its finance cost and provide improved working capital support.
The Issue price of N27.00 represents a discount of 16.1% to the Company’s closing market price of N31.35 as at Friday, January 12th, 2017.
The offer opens today, Monday, January 15th, 2018 and will close on Wednesday, February 21st, 2018.