The proposed merger of Dangote Sugar Refinery Plc (NGX: DANGSUGAR), Nascon Allied Industries Plc (NGX: NASCON) and Dangote Rice Limited has been suspended.
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In a regulatory filing on Thursday, NASCON notified the Nigerian Exchange Limited and the investing public that a decision has been taken to suspend the said merger at this time.
The suspension is due to the comments and recommendation of the Securities and Exchange Commission (SEC) centered around the current non-operational status of Dangote Rice Limited.
Investogist reported in August 2023 of a proposed merger between Dangote Sugar Refinery Plc, Nascon Allied Industries Plc and Dangote Rice Limited, all subsidiaries of Dangote Industries Limited.
It was 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.
The proposed scheme for consideration in 2023 was;
- Eleven (11) ordinary shares of 50 Kobo each in DANGSUGAR, credited as fully paid-up shares, for every Twelve (12) NASCON shares of 50 Kobo each, which totals 2,428,651,847 new ordinary shares of DSR; and
- Fourteen (14) ordinary shares of 50 Kobo each in DANGSUGAR, credited as fully paid-up shares, for every One (1) ordinary shares of N1.00 Kobo each in DRL share, which totals 2,775,792,508 new ordinary shares of DSR.
About the companies
Dangote Sugar Refinery Plc was incorporated as a Public Limited Liability company on 4 January 2005, commenced operation on 1 January 2006 and became quoted on the Nigerian Stock Exchange in March 2007. The principal activity of the Group is the refining of raw sugar into edible sugar and the selling of refined sugar. Its current shareholding is 68% by Dangote Industries Limited and 32% by the Nigerian public.
Established in 1973, NASCON Allied Industries Plc (previously known as NASCON Plc), a registered company in Nigeria, was established as a salt refining establishment under the name National Salt Company (NASCON). The company has since evolved with additional business lines to include Vegetable Oil, Tomato Paste and Seasoning with production facilities in Lagos State (Apapa and Oregun), Ogun State (Ota), Rivers State (Port Harcourt).
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.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
