Flour Mills of Nigeria Plc, a leading agro-allied company, has officially delisted its shares from the Nigerian Exchange (NGX) after 45 years of trading. The delisting, effective December 30, 2024, follows the company’s application to withdraw its entire issued share capital from the exchange.
The NGX had earlier suspended trading in Flour Mills’ shares on December 16, 2024, as a preparatory step for the delisting process. This move was communicated to investors and the public through a market bulletin.
According to the NGX weekly market report, the delisting of Flour Mills of Nigeria’s shares officially took effect on December 30, 2024. This announcement came after an earlier bulletin issued by the exchange on December 16, notifying investors and the public about the suspension of trading in the company’s shares in preparation for the delisting process.
“We refer to our market bulletin of 16 December 2024 with reference Number: NGXREG/IRD/MB93/24/12/16 wherein the market was notified of the suspension placed on trading in the securities of Flour Mills of Nigeria Plc in preparation for the delisting of the company.
“Following the approval of the company’s application to delist its entire issued share capital from Nigerian Exchange Limited (NGX), please be informed that the entire issued share capital of Flour Mills of Nigeria were on Monday, December 30, 2024, delisted from the daily official list of NGX,” the announcement highlighted.
The decision to delist was driven by Flour Mills’ majority shareholder, Excelsior Shipping Company Limited, which proposed to acquire all shares held by minority shareholders. This proposal was approved during its 64th Annual General Meeting (AGM) on November 14, 2024, where minority shareholders consented to the buyout at N86 per share.
The Securities and Exchange Commission (SEC) granted a “no objection” ruling to the acquisition, fulfilling a key regulatory requirement. In accordance with Section 715 of the Companies and Allied Matters Act (CAMA) 2020, all outstanding shares not owned by Excelsior Shipping Company Limited have been transferred to the majority shareholder.
Flour Mills Delists from NGX after 45 Years. Delisting is part of a strategic restructuring aimed at consolidating ownership and streamlining operations. The company has announced an ambitious $1 billion investment plan to expand its presence across the African continent over the next four years. This expansion is anticipated to create new opportunities and unlock value for the company, its employees, and economies throughout Africa.
Flour Mills Delists from NGX is part of a broader trend observed in the Nigerian capital market, where several companies have opted to delist their shares. Other companies reportedly considering delisting include MRS Oil Nigeria Plc, Wapic Insurance Plc, International Energy Insurance Plc, and Lafarge Africa Plc (WAPCO). Lafarge’s parent company plans to sell its 83% stake to a Chinese firm, Hauxin Cement, in a deal worth $1 billion, which will trigger a mandatory tender offer, mandating minority shareholders to exit the company.
This growing trend of exits has raised concerns among regulators and policymakers, posing a potential threat to the stability of the capital market. The delisting of these four companies is expected to remove over N1.3 trillion from the exchange’s total market capitalization. In 2023, 11 companies with a combined value of N500 billion were delisted, while 16 firms exited the exchange the previous year. Since 2002, a total of 151 companies have been delisted from the Nigerian Exchange.
The trend of delisting raises concerns about the depth and liquidity of the Nigerian capital market. Market analysts suggest that companies may be seeking to restructure ownership, reduce regulatory compliance costs, or pursue strategic investments without the scrutiny that comes with being publicly listed.
For investors, these delistings mean fewer options in the public equity market and may prompt a reassessment of investment strategies. It also underscores the importance of due diligence and staying informed about corporate actions that could impact investment portfolios.
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