Ecobank Nigeria Limited has warned Flour Mills of Nigeria Plc against the proposed acquisition of equity stake in Honeywell Flour Mills Plc, alleging that Honeywell Group Limited, the parent firm, has not been paying up its loans from the bank.
Earlier, there was a proposed deal between Flour Mills of Nigeria and Honeywell Group where Flour Mills would be acquiring 71.69 per cent of Honeywell Group’s stake in its listed subsidiary.
But a letter obtained by our correspondent which was signed by solicitors to Ecobank, Kunle Ogunba and Associates, and addressed to the Managing Director of Flour Mills of Nigeria, cautioned the public and corporate bodies on the “danger inherent in dealing in any shares of the company.”
Ecobank said it had advanced several loan facilities, which included working capital disbursements, to Honeywell Flour Mills.
The bank said due to the failure of the company to liquidate the said loan facilities, it was constrained to commence winding up proceedings against Honeywell Group Limited at the Federal High Court, Lagos in suit no: FHC/L/CP/1571/2015.