Nov. 20 (Bloomberg) -- Nigerian Bag Manufacturing Co. Plc, a packaging manufacturer, rose to the highest in more than 15 months after Flour Mills of Nigeria Plc said it received approval to buy the company.
The stock gained 7.1 percent to 2:26 naira by the close in Lagos, Nigeria’s commercial capital, the highest since August 2011. About 12.8 million shares or almost triple the three-month daily average, traded, according to data compiled by Bloomberg.
The boards of the two companies propose to recommend shareholders accept 25 shares of Bagco for one share of Flour Mills, Flour Mills said in a statement published today on the website of the Nigerian Stock Exchange, or 2.75 naira a share in cash.
“What they are offering the shareholders is a significant hike from the current market price, so I should expect that the price of the stock should jump,” Pabina Yinkere, head of research at Lagos-based Vetiva Capital Management Ltd., said by phone today.
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