The Flour Mills of Nigeria said on Wednesday it will seek shareholders’ approval to acquire a controlling stake in privately-held food manu
facturer Rom Oil Mills, to boost its market share in Nigeria and beyond.
Flour Mills said in a notice to investors that at the next general meeting, which will be holding September 12 they will like to buy 90% stake in Rom Oil Mills based in Ibadan.
Flour Mills, whose interests include cement, fertilizer manufacturing and has a 40 percent market share in flour milling, did not disclose how much it was offering for the stake in the vegetable and edible oil refining business.
Shares in Flour Mills were trading flat at 52 naira at 1239 GMT on the news, to value it at 121 billion naira ($753 mln).
Reports have it that flour demands in Nigeria is over 2 million tonnes per annum and the country has 23 flour plants. ($1 = 160.65 naira)