Dangote Sugar Refinery Plc., in an announcement to the Nigerian Exchange Limited and the investing public, confirmed on July 31, 2023, its plan to merge with NASCON Allied Industries Plc. and Dangote Rice Limited. The board of directors gave their recommendation for the proposed merger on July 28, the same day NASCON’s board approved the same plan.
The proposed merger, which is set to be executed as an internal restructuring via a Scheme of Merger, is subject to agreement on terms and conditions by all involved parties, namely Dangote Sugar Refinery, NASCON, and Dangote Rice Limited. All three firms are subsidiaries of Dangote Industries Limited.
The board’s decision aligns with NASCON’s earlier press release, where the company outlined a similar plan, noting that the merger is subject to regulatory and shareholder approvals.
Dangote Sugar will apply for the Securities and Exchange Commission’s approval of the Scheme, and the merger is also contingent on approvals from shareholders at the respective Court-Ordered Meetings and the sanction of the Federal High Court.
Dangote Sugar highlighted that the merger would consolidate and strengthen the Group’s market position and lay the foundation to take advantage of future opportunities in the food industry.
Further details on the merger will be shared once all necessary approvals have been received from shareholders and regulators. Meanwhile, shareholders have been advised to exercise caution when dealing with the shares of the Company until a subsequent announcement is made.
Nairametrics will continue to provide updates on this developing story, keeping its finger on the pulse of one of the potentially most transformative deals in Nigeria’s food sector.