To Consolidate Market Position, Dangote Sugar, NASCON, Dangote Rice Merge to Form N553bn Company
In a bid to consolidate its market position and harness future opportunities, Dangote Sugar Refinery Plc, yesterday in Lagos announced the merger between it, NASCON Allied Industries Plc and Dangote Rice Limited.
In a statement to the Nigerian Exchange Limited yesterday, the company said the proposed merger would be an internal restructuring executed through a Scheme of Merger, under Section 711 of the Companies & Allied Matters Act, 2020 (as amended) and other applicable rules and regulations.
Dangote Sugar Refinery Plc and NASCON Allied Industries Plc with market capitalisation of N464.40 billion and N88.75 billion respectively, would together with Dangote Rice Limited, with an estimated value of over N100 billion become a N553 billion entity after the merger.
According to the statement signed by the Company Secretary/Legal Adviser, Dangote Sugar Refinery Plc, Mrs. Temitope Hassan, “Dangote Sugar Refinery Plc hereby notifies the Nigerian Exchange Limited and the investing public that the Board of Directors of the Company at its meeting held on July 28, 2023 resolved to recommend the proposed merger between the Company, NASCON Allied Industries Plc and Dangote Rice Limited to the shareholders of the company for consideration and approval, subject to parties agreeing terms and conditions.
“The Company, NASCON & DRL hereinafter referred to as the “merging entities” are all subsidiaries of Dangote Industries Limited.
“The company will apply for the Securities and Exchange Commission’s approval of the Scheme, and other requisite approvals. The scheme is also subject to the approval of the shareholders of the merging entities at the respective Court-Ordered Meetings of the companies, as well as the sanction of the Federal High Court.”
The company added, “It is expected that the transaction will consolidate and solidify the Group’s market position and ultimately reposition the Group to harness future opportunities in the foods industry.
“Further details will be communicated to the market upon relevant approvals being obtained from shareholders and regulators. Shareholders of the company are advised to exercise caution when dealing with the shares of the Company until a further announcement is made.”
NASCON, formerly known as National Salt Company of Nigeria, was incorporated in 1973 as a salt refinery to address the identified need for Nigeria’s self-sufficiency in the production of salt.
Dangote Rice Limited was incorporated in 2014 and is a subsidiary of Dangote Industries Limited. It is in the business of creating rice processing facilities across the country, along various models to satisfy its paddy rice needs, customised to each catchment area’s situation.
Thisdaylive.com
