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Business News of Friday, 26 November 2021

Source: punchng.com

Flour Mills, Honeywell’s market capitalisation jumps by 34%

Nigeria’s largest flour milling companies, Flour Mills of Nigeria Plc Nigeria’s largest flour milling companies, Flour Mills of Nigeria Plc

Two of Nigeria’s largest flour milling companies, Flour Mills of Nigeria Plc and Honeywell Flour Mills Plc, have recorded a combined increase of N39bn (33.53 per cent) in their market capitalization so far this year, data collated from the Nigerian Exchange Limited have shown.

Flour Mills of Nigeria and Honeywell Group Limited had on Monday November 22,2021 announced the signing of an agreement for the proposed combination of FMN and Honeywell Flour Mills.

Honeywell Group will dispose of a 71.69 per cent stake in its listed subsidiary to Flour Mills at a total enterprise value of N80bn, according to a statement.

Flour Mills also announced that it had entered into an agreement with First Bank of Nigeria Limited to acquire the bank’s 5.06 per cent equity in Honeywell Flour Mills.

Flour Mills’ market cap increased to N123.01bn on Thursday November 25,2021 from N106.61bn on the first trading day of this year as its share price rose by 15.39 per cent to N30 per share on Thursday from N26 per share.

Honeywell saw its market value jump to N32.12bn on Thursday November 25,2021 from N9.52bn on Jan. 4, 2021 as its share price ballooned by 237.5 per cent to N9.52 per share from N1.2 per share.

The share price of Honeywell Flour Mills rebounded at the end of trading on the floor of the NGX on Thursday November 25,2021 after the firm rebutted the claims made by Ecobank Nigeria Limited.

The company had on Wednesday November 24,2021 seen its share price drop by 9.78 per cent to N3.69, with a N3.17bn loss in market capitalization, following The PUNCH report of a letter by Ecobank warning Flour Mills against the proposed acquisition of equity stake in Honeywell Flour Mills.

HFMP and FMN responded on Wednesday that there was no court case restraining the proposed sale of 71.69 per cent of Honeywell Group Limited’s stake in HFMP to FMN.

At the end of trading on Thursday November 25,2021, investors traded a total of 52.47 million shares of HFMP on the floor of the NGX, driving its share price up by 9.76 per cent to N4.05. Its market capitalization gained N2.85bn to close at N32.12bn.

Flour Mills announced last month that its unaudited half-year results for the year 2021/22 showed consistent growth, with revenue increasing by 47 per cent and profit after tax growing by six per cent, compared to the same period last year.

Honeywell said its profit after tax for the six months ended Sept. 30, 2021 surged by 73 per cent to N353m from N204m as its revenue rose to N67.91bn from N56.91bn.

FMN and HFMP said on Monday November 22, 2021 that the proposed transaction would combine two businesses with shared goals and create a more resilient national champion in the Nigerian foods industry, ensuring long-term job creation and preservation.

They said stakeholders would benefit from their over 85-year combined track record as well as their shared goal of making affordable and nutritious food available to Nigeria’s population