Flour Mills eyes dual listing after restructuring plan

Flour Mills of Nigeria Plc (FMN), is planning a dual listing following a comprehensive business restructuring aimed at driving long-term growth.

FMN would re-list on the Nigerian Exchange (NGX) and explore listing in an additional market after it completes its reorganisation process, according to the food and agro-allied firm.

John Coumantaros, FMN’s chairman, shared this development in a recent interview, highlighting the company’s commitment to increased investments in Nigeria and across Africa. “Our pan-African food business will likely feature a dual listing on the NGX and another stock exchange,” said Coumantaros.

In late September, FMN announced that it had secured regulatory approval to buy out its minority shareholders, a step following its local partner and major shareholder, Excelsior’s decision to go private as part of the restructuring. The buyout, conducted through a scheme of arrangement, will lead to FMN’s temporary delisting from the NGX.

However, he stressed the company’s intention to return to the market post-restructuring. “We plan to return with a dual listing as a pan-African food or agro-allied business.

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“The NGX will remain a crucial platform for our future, but first, we need to reorganise, retool, recapitalise, and refocus to ensure readiness for this strategic move,” he stated.

As part of the restructuring, FMN intends to streamline its 22 business units into five key companies, a move aimed at attracting both technical and financial partners. The restructuring will focus on bolstering operations in high-growth areas, particularly its sugar and food businesses.

In alignment with this plan, Flour Mills of Nigeria will invest up to $1 billion over the next four years to expand its operations. The company is committing a minimum of $500 million towards its sugar business in Niger State, aiming to scale production from 100,000 tons to over 400,000 tons annually.

Additionally, FMN will invest $100 million to build a cassava-processing plant aimed at reducing the country’s cassava starch imports.

Coumantaros noted that the majority of the required capital would be sourced internally, with FMN also focusing on expanding its breakfast cereal product line.

“The capital requirements are significant. While we will contribute a large share, growth demands collaboration. We will seek technical and financial partners to bring in expertise and help scale our operations, creating more business and jobs in Nigeria,” he added.

Looking ahead, FMN is also leveraging the African Continental Free Trade Area (AfCFTA) to drive expansion across Africa, starting with West Africa.

“With the AfCFTA, we see opportunities beyond Nigeria. Our vision is to build a pan-African food business headquartered in Nigeria. We intend to capitalize on the AfCFTA to broaden our footprint across the continent,” the chairman said.