Nigeria’s Flour Mills will seek shareholders’ approval to raise fresh capital and diversify its portfolio to include power generation, the company said on Thursday.
Nigeria is planning a multi-billion dollar privatisation of its power sector to end constant blackouts which have long been a brake on growth in sub-Saharan Africa’s second-largest economy.
The power road map has solicited interest from investors in electricity distribution and power stations.
Flour Mills, which has business interest spanning cement, haulage, fertilizer and food manufacturing said in a notice it will seek the approval at a meeting on September 7 and could engage in electricity generation and distribution.
Treasury director, Vlassis Liakouris told Reuters in December that Flour Mills intended to invest at least 20 billion naira a year for the next two to three years to finance growth.
Flour Mills in December raised 37.5 billion naira ($246 million) in five-year bonds, the first tranche of a planned 70 billion naira debt programme, Nigeria’s first corporate debt issue outside the banking sector in recent years.
The company, which sells flour to food manufacturers and pasta directly to consumers, plans either a rights issue or approach new investors to raise capital.
Local press reports quoted chairman George Coumantaros in June saying Flour Mills intends to invest in capital projects to expand its operation and said the company planned to raise 30-40 billion naira in equity.
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