FRI, AUGUST 04 2023-theGBJournal |The Board of Directors of Dangote Sugar Refinery has recommended a merger between the Company, NASCON Allied Industries Plc (NASCON) and Dangote Rice Limited (DRL) to the Shareholders of the Company for consideration and approval, subject to parties agreeing terms and conditions.
The recommendation follows a meeting of the Board of Directors held on July 28, 2023.
The companies are all subsidiaries of Dangote Industries Limited.
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.
According to Dangote Sugar, the proposed merger is intended as an internal restructuring ”executed through 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 it will apply for the Securities and Exchange Commission’s (SEC)approval of the Scheme, and other requisite approvals, and will also be 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. Further details will be communicated to the market upon relevant approvals being obtained from Shareholders and Regulators,” the Company said.
Shareholders of the Company are advised to exercise caution when dealing with the shares
of the Company until a further announcement is made.
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