Dangote Sugar Refinery has revealed its strategic move to strengthen its market presence and capitalize on future prospects by announcing a merger with NASCON Allied Industries and Dangote Rice Limited.
The announcement, made on Tuesday in a regulatory filing with the Nigerian Exchange Limited, marks a significant step towards consolidating operations and leveraging opportunities in the foods industry by the companies.
The company outlined its intention to undergo an internal restructuring through a Scheme of Merger, in accordance with Section 711 of the Companies & Allied Matters Act, 2020 (as amended), as well as other relevant rules and regulations.
Following the proposed merger, Dangote Sugar Refinery Plc and NASCON Allied Industries Plc, boasting market capitalizations of N464.40 billion and N88.75 billion respectively, will unite with Dangote Rice Limited, valued at over N100 billion. This amalgamation will result in the creation of an entity with an estimated worth of N553 billion.
The statement signed by Dangote Sugar’s Company Secretary/Legal Adviser, Temitope Hassan, conveyed the board’s resolution to recommend the merger to the shareholders of the company. The recommendation is subject to mutual agreement on terms and conditions.
All three entities – Dangote Sugar Refinery Plc, NASCON Allied Industries Plc, and Dangote Rice Limited – are subsidiaries of Dangote Industries Limited.
The company plans to seek approval for the Scheme from the Securities and Exchange Commission (SEC) and other necessary regulatory bodies. Additionally, the Scheme will require endorsement from the shareholders of the merging entities during their respective Court-Ordered Meetings, as well as approval from the Federal High Court.
This merger initiative is projected to enhance the Group’s competitive standing, consolidate its market influence, and reposition the Group for future growth within the food sector.
The statement said further particulars regarding the transaction will be shared with the market once regulatory and shareholder approvals are secured. The company advised its shareholders to exercise prudence when trading its shares until additional announcements are made.
Notably, NASCON Allied Industries, previously known as the National Salt Company of Nigeria, was founded in 1973 to address Nigeria’s salt production needs.
On the other hand, Dangote Rice Limited, a subsidiary of Dangote Industries Limited, was established in 2014 and focuses on establishing rice processing facilities across Nigeria to cater to diverse regional demands.
(Edited by Oludare Mayowa; email@example.com; Newsroom: +234 8033 964 138)