Fan Milk International increases shares in Ghana company to 62.1%

Fan Milk Limited

Fan Milk Limited (FML) has announced an acquisition of 5.46% more shares by parent company, Fan Milk International A/S.

Fan Milk International A/S increased its majority stake after purchasing 6,345,563 ordinary shares from the ice-cream company taking their total stakes to 62.1%

It was previously held by Shanghai Arisaig Africa Consumer Fund.

The Ghana Stock Exchange (GSE) announced that the transaction was executed on September 29, 2020.

FML has had a poor run on the Accra Bourse losing up to 74% in share price this year.

The current share price is pegged at GHS1.05 per share.

With close to 15 products, Fan Milk Ghana has expanded to several African countries including Ghana, Nigeria, Cote d’Ivoire and Togo.

History

Fan Milk was started by a Danish entrepreneur with some other investors in Ghana as Ghana Cold Store in 1959.

It was renamed Ghana Milk Company in 1960 with the primary aim of producing and distributing fresh milk-based products.

The need for quality logistics sourcing gave birth to the partnership between Danish sourcing and trading company, Emidan, which started as a supplier to dairy factories in Ghana in 1960 and later in other parts of West Africa.

Vendors were employed to distribute to schools, shops, department stores, homes, hospitals etc using container-carrying bicycles popularly known as the ‘Long John Bicycles’.

The business couldn’t flourish by then but was just fair enough to support bank loans to keep the company in operation since the consumption of fresh milk was not common among Ghanaians.

Rebranding to Fan Milk

As part of the company’s new direction, a unique corporate logo was introduced. It was created by a Dane, Viggo Arentoft, who was inspired by the symbolism attached to the oriental fan, a cooling tool. ​

Subsequently, in a General Meeting on 26th March 1962, a special resolution was passed to change the name of the company to Fan Milk Limited while considering more sophisticated use of milk in its operations, thus the production of flavoured milk products.​

In a space of eighteen months, the company experienced a quick turnaround in its economic operations and a fleet of new bicycles and equipment were acquired to support the growth of the business.

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