Flour Mills of Nigeria Plc (FMN) says that the agreement to assume majority shareholder status of Honeywell Flour Mills Plc (HFMP) is not in breach of any subsisting court order.
In a statement by its company Secretary and Director, Legal Services, Umolu Joseph A. O., the company said it made the announcement on Monday after carrying out necessary due diligence and obtaining appropriate legal guidance.
It said the assurance was necessary in lieu of media reports suggesting that Ecobonk had warned against acquisition of Honeywell Flour Mills on the ground that the company was facing winding up proceedings.
The statement read: “Consequently, FMN confirms that this agreement is not in breach of any subsisting Order of Court in matters relating to any third party.
“Stakeholders are therefore urged to maintain their trust in FMN’s management, whose actions are guided by global best practices, as we work diligently to maintain the Group’s sterling reputation as one of Nigeria’s leading and oldest agro-allied companies.
“It is expected that this combination will create a more resilient national champion in the Nigerian food industry, ensuring long-term job creation and preservation.
“Greater benefits expected from the combination include enhanced efforts in attaining National food security objectives and leveraging opportunities stemming from the African Continental Free Trade Area (AfCFTA).”