Plans are underway for the merger of Dangote Sugar Refinery Plc (NGX: DANGSUGAR), NASCON Allied Industries Plc (NGX: NASCON) and Dangote Rice Limited (not listed on the Nigerian Exchange).
The Board of Directors of Dangote Sugar Refinery reached the resolution at its meeting held on July 28, 2023, according to notice to the Nigerian Exchange and the investing public.
The proposed merger will be recommended to the shareholders of NASCON and DRL “for consideration and approval, subject to parties agreeing terms and conditions.
The three companies – Dangote Sugar refinery Plc, NASCON & DRL are all subsidiaries of Dangote Industries Limited.
The proposed merger is intended as a be an “internal restructuring executed through a Scheme of Merger (“Scheme”), under Section 711 of the Companies & Allied Matters Act, 2020 (as amended) and other applicable rules and regulations.
Dangote Sugar Refinery said it 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.
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.
Shareholders of the Company are advised to exercise caution when dealing with the shares of the Company until a further announcement is made
About NASCON Allied Industries Plc
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. It was listed on the Nigerian Stock Exchange in 1992 and acquired by Dangote Industries Limited in 2007.
NASCON has a wide variety of products which it manufactures and offers to consumers, including salt retail packs sold under the brand name Dangote Refined Salt as well as Seasoning under the brand name of Dangote Classic Seasoning.
About Dangote Rice Limited
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.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.