May 24, 2024

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Oba Otudeko earns N22.24 billion ($53.55 million) from his 66.8% stake in Honeywell Flour Mills

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Flour Mills of Nigeria Plc, FMN, has finally acquired the controlling stake in Honeywell flour Mills.

According to a statement from FMN, the company announced that it has acquired a 71.69 per cent stake in Honeywell Flour Mills, as well as a 5.06 per cent stake in the firm for N4.2 ($0.01011) per share.

On the completion of the negotiation after the valuation exercise, Chief Obafoluke Otudeko, the founder of Honeywell Flour Mills with 66.8 per cent equity got paid a humongous sum of N22.24 billion, ($53.55 million)

It was estimated that the acquisition will drastically increase FMN assets to the tune of N703 billion, ($1.7 billion), thus it will also greatly increase its manufacturing capacity.

While the estimated revenue from the synergy was put at N850 billion, about $2.1 billion, Oba Otudeko expressed satisfaction in the process and the outcome of the deal.

Speaking on the synergy, Oba Otudeko expressed the optimism thus, “as we entrust Flour Mills of Nigeria with building on Honeywell Flour Mills’ strong legacy, we will work closely with them to ensure seamless integration, laying the groundwork for the combined company’s success,” he said.

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