Flour Mills of Nigeria Offers Shares at $0.40 in Rights Offer, Trader Says

Flour Mills of Nigeria Plc (FLOURMIL), which processes grains and sells cement, will offer shares to existing investors at 62 naira apiece, said Walter Bassey, an equity trader at CSL Stockbrokers Ltd.

Flour Mills is selling 455.6 million shares in the rights offer, and shareholders will be entitled to buy eight new shares for every 33 already held, Bassey said in an e-mailed statement, citing information provided to brokers by the stock exchange. The qualifying date is Oct. 7, he said.

The company plans to raise as much as 28 billion naira ($179 million) from the rights offer, Chief Executive Officer Emmanuel Ukpabi told shareholders at an annual general meeting in Lagos, Nigeria’s commercial capital, on Sept. 7. The money will be used to diversify into new markets including power generation, he said.

Shares in the company closed unchanged at 78.99 naira in Lagos yesterday. The stock has gained 14 percent so far this year, compared with a 15 percent decline by the Nigerian Stock Exchange All-Share Index.

To contact the reporter on this story: Vincent Nana in Lagos at vnwanma@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin in Johannesburg at asguazzin@bloomberg.net.

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