As FMN rights ends, shareholders concern over dividend payment.

Cross -section of shareholders of Nigerian flourmills Nigeria Plc has expressed concern, on when the company would commence dividend payment, even as its N49 billion rights issues ends.

As the rights issue of flourmills Nigeria (NFM) Plc ended on 21 February , 2018, many stakeholders have continued to make enquiry on the next stage in the face of declining equity pricing of the company on the Exchange.

A stock broker, who preferred anonymity, said that the company’s sugar plantation in Sunti, Nasarawa state may be of higher risks and threat to future earnings of the company based on the threat of herdsmen across the country and attacks on farmland and farmers.

“With this, weak performance of the sugar sector and the mounting debt profile of the company, dividend payment may be when retained earnings improves” the shareholder pointed.

The broker said “’ when the company visited the Exchange to present their facts behind the offer, we were promised that the company would sustain its dividend payment policy, but we have to make do with price appreciation”

The NFM through its rights issue, issued 1,476,142,418 Ordinary Shares of 50 kobo each at N27.00 per share amounting to a gross issue proceeds of N39, 855,845,286.

Shareholders were offered, 9 new ordinary shares for every 16 ordinary shares of 50 kobo each held, the offer which closed on Tuesday February 21st, 2018, opened on 8th December 2017.

Meanwhile, Gbededo, CEO Nigerian Flour mills Plc had earlier disclosed recently that the company will continue its effort at rewarding shareholders with dividend payment. “We are going to continue our good dividend paying policy and guaranteed performance to drive price growth

On the risk valuation of the company’s Sunti sugarcane farm,

“We deal more without growers’ farmers, we do not have issues with herdsmen, adding that the company’s sugarcane farm is positioned in a way that it is not likely

Flour Mills of Nigeria (FLOURMILL) Rights Issue, opened on 15 January, 2018, and closed on Wednesday, 21 February 2018.

The Rights Issue is being undertaken to enable FLOURMILL deleverage its balance sheet, support working capital needs, and position the company to exploit value-accretive opportunities.

Stories by Bonny Amadi