How Oba Otudeko Sold Honeywell Flour Mills For N22bn To Offset Age Long Loan To First Bank

After months of negotiations and proper preparation of documentation, Flour Mills of Nigeria Plc a Nigerian agro-allied group led by Greek investor, John Coumantaros, has announced that it has acquired a 71.69-percent stake in Honeywell Flour Mills, as well as a 5.06-percent stake in the firm for N4.2 ($0.01011) per share. Following the completion of the transaction, industrialist Obafoluke Otudeko, who is the founder of Honeywell flour mills pocketed a total of N22.24 billion ($53.55 million) from his stake in the deal.

Otudeko owned 66.8 percent of Honeywell Flour Mills, (under his Honeywell Group) which has a diverse product portfolio including Honeywell Semolina, Honeywell Noodles and Honeywell Pasta.

The journey to the sale and purchase of Honeywell Flour Mills began last year when Otudeko began battling with a myriad of troubles stemming from his alleged underhand deals as Chairman board of directors, First Bank of Nigeria Holdings.

Following his sack alongside others from the board of FBNH by the Central Bank of Nigeria, the CBN ordered his Honeywell Flour Mills to repay a loan it took from First Bank within 48 hours, failing which the apex bank threatened to take appropriate regulatory measures against the insider borrower and the bank.

CBN was upset with First Bank for non-compliance with regulatory directives to divest its interest in Honeywell Flour Mills, despite several reminders. But Otudeko countered CBN insisting thay Honeywell always serviced its loan accordingly..

Credits: The Wall Street Journal.