Shareholders of Flour Mills Nigeria Plc have approved a resolution pertaining to the restructuring outlined in the scheme document dated March 22, 2024.
In the court-ordered meeting on Thursday in Lagos, it was resolved that, upon the effective implementation of the arrangement detailed in the scheme document, the Bagco division will no longer operate as part of Flour Mills.
Instead, the business will transition to be operated as Bagco Industrial Solutions Limited, in strict adherence to the terms stipulated in the scheme document and in compliance with the court order.
This was contained in the company’s notice to the Nigerian Exchange Limited (NGX) and the investment Public seen by Nairametrics.
Furthermore, the Board of Directors of Flour Mills Nigeria Plc has been duly authorized to undertake all necessary actions to facilitate the execution of the Scheme of Arrangement.
Additionally, shareholders sanctioned that, contingent upon the court’s approval, the assets and liabilities of the Bagco division outlined in Annexure I to the Scheme, encompassing licenses, contracts, intellectual property rights, and ongoing litigations, will be delineated from the accounts of Flour Mills.
Subsequently, these assets and liabilities will be transferred to its wholly-owned subsidiary, Bagco Industrial Solutions Limited, for operational purposes.
Furthermore, it was resolved that upon the scheme’s effective implementation, all employees currently engaged in the packaging Division of Flour Mills, Bagco Division, will be seamlessly transitioned to become employees of Bagco Industrial Solutions Limited. This transition will be conducted in strict accordance with the provisions delineated in the Scheme and pursuant to the Court order.
According to the statement signed by a Director of the company, Omoboyede Olusanya, and the Company Secretary, Lusanya Joseph Umolu, the sub-joined resolutions presented at the meeting were voted through polls and duly passed.
The shareholders of food and agro-allied company, FMN, at an Annual General Meeting in Lagos, approved the transition of a division of the manufacturer, BAGCO, into a 100% owned subsidiary.
The Securities and Exchange Commission (SEC) approved BAGCO’s merger with FMN in late 2012. The merger saw the transfer of all assets, liabilities, and undertakings of BAGCO and BAGCO-North to Flour Mills.