Honeywell counters Ecobank’s claims on winding-up proceedings

Honeywell Flour Mills Plc (HFMP) has faulted claims by Ecobank Nigeria Limited that it is facing winding-up proceedings over alleged indebtedness to the bank.

Ecobank had in a petition sent to the Managing Director of Flour Mills Plc placed a ‘caveat’ on the planned takeover of 71.69% stake in Honeywell Flour Mills Plc, saying the company is facing a winding-up proceeding over alleged indebtedness.

However, in its response, Honeywell Plc assures its stakeholders that the recent announcement on Flour Mills of Nigeria (FMN) Plc’s acquisition of a majority stake in HFMP was made in compliance with all rules and regulations.

In a statement titled; ‘Re-purchase of Honeywell Group Ltd’s 71.69% stake in Honeywell Flour Mills Plc’, HFMP said Ecobank’s claims not only lacked merit and made in bad faith, but also a deliberate attempt to undermine a transaction that will result in substantial benefit to the Nigerian economy and entrench the collaboration of two publicly quoted companies.

“It is pertinent to set the record straight that there is no winding-up petition currently pending or live against HFMP in any court in Nigeria. There is also no pending court order restraining trading in the shares of HFMP or inhibiting HFMP or its owners from dealing in its assets.

“HFMP assures its investors, regulators and stakeholders that in all its engagements with FMN, it received independent legal advice and asserts that the transaction is not in breach of any subsisting order of court. The issue as to whether HFMP is indebted to Ecobank is still before the court and the final decision remains the exclusive preserve of the courts.

“It is also important to state that the Court of Appeal judgement being reffered to in the reports did not declare HFMP to be indebted to Ecobank,” the statement reads.

In a related development, Flour Mills of Nigeria (FMN) Plc has equally assured its stakeholders that the decision to take over 71.69% shares of HFMP was made after carrying out due diligence and obtaining of appropriate legal guidance.

In a statement, FMN Plc said the agreement with HFMP is not in breach of any subsisting order of court in matters relating to any third party.

“Stakeholders are therefore urged to maintain their trust in FMN’s management whose actions are guided by global best practices, as we work diligently to maintain the Group’s sterling reputation as one of Nigeria’s leading and oldest aggro-allied companies,” it said.