LAGOS, NIGERIA — Flour Mills of Nigeria announced on Aug. 12 it plans to restructure by merging five of its subsidiaries with its holding company. Group Managing Director Paul Miyonmide Gbededo said the company has obtained the approval-in-principle of the Securities and Exchange Commission (SEC) to merge five of its wholly owned subsidiaries, Golden Noodles Nigeria Limited, Golden Transport Company Limited, FMN Cement Industries (Nigeria) Limited, New Horizon Flour Mills Limited and Quilvest Properties Limited with Flour Mills of Nigeria Plc.

According to Gbededo, the reason for restructuring is the need to streamline operations, reduce administrative costs, improve operating efficiency and derive full benefits of synergy in line with the company’s long-term strategic thrust.

“The enlarged FMN, upon completion of the restructuring, would be able to eliminate transfer costs of materials and operate at a higher level of efficiency which will drive down costs, make product pricing more competitive, improve profitability and enhance the bottom line of all stake holders,” Gbededo said.

Company secretary Alhaji Olalekan Saliu said the management of the various companies has jointly obtained an Order of the Federal High Court directing that court ordered meetings of their respective shareholders be held Sept. 9, for the purpose of restructuring.

If the shareholders give the approval, the final approval of the SEC will be sought and the Federal High Court will be approached to sanction the merger. The restructuring is expected to be concluded in October.