August 31, (THEWILL) – Dangote Sugar Refinery Plc is to merge with NASCON Allied Industries and Dangote Rice after the trio agreed to the terms and conditions clearing the path for their integration into a single entity.
The proposal will be executed courtesy of “a scheme of merger under Section 711 of the Companies & Allied Matters Act, 2020 (as amended) and other applicable rules and regulations,” Dangote Sugar said in a statement on Wednesday.
Dangote Sugar, NASCON and Dangote Rice are all members of the conglomerate Dangote Industries Limited controlled by Africa’s richest man Aliko Dangote.
Through the scheme consideration, 12 ordinary shares in NASCON will be exchanged for 11 Dangote Sugar shares, totalling 2,428,651,847 new ordinary shares of Dangote Shares.
Similarly, every one ordinary share of Dangote Rice will be swapped for 14 Dangote shares, adding up to 2,775,792,508 new ordinary shares of Dangote Shares, according to the document.
If the transaction goes through the total fully paid-up shares of the combined entity will come to 17,351,322,596.
THEWILL recalls that Dangote Sugar first announced the merger in July, noting the deal “will consolidate and solidify the Group’s market position and ultimately reposition the Group to harness future opportunities in the foods industry.”
Shares in Dangote Sugar and NASCON have gained 95.3 per cent and 119.8 per cent respectively since 13 July, when the merger plan was first announced.
“The company will now proceed to apply to the SEC for the approval of the scheme, and subject to the approval of the SEC, will apply to the Federal High Court for an order to convene a meeting of its shareholders to consider the Scheme,” the document said.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
