Dangote Sugar Refinery, NASCON Allied Industries, and Dangote Rice have agreed to terms and conditions of a merger between the three companies.
As announced in a statement by Dangote Sugar, the merger will solidify the group’s market position and position it in an advantageous position for future endeavours.
The proposal of the merger, as revealed, is a ”scheme of merger under Section 711 of the Companies & Allied Matters Act, 2020 (as amended) and other applicable rules and regulations.”
According to the document, “The company will now proceed to apply to the SEC for the approval of the scheme, and subject to the approval of the SEC, it will apply to the Federal High Court for an order to convene a meeting of its shareholders to consider the Scheme.”
The merger was first announced by Dangote Sugar in July, explaining that the deal “will consolidate and solidify the Group’s market position and ultimately reposition the Group to harness future opportunities in the food industry.”
Since the announcement of the deal, the shares of Dangote Sugar and NASCON have gained 95.3 per cent and 119.8 per cent respectively.
All three companies involved in the merger, Dangote Sugar, NASCON and Dangote Rice, are conglomerate members of Dangote Industries.
The merger is going to see to it that 12 ordinary shares in NASCON will be exchanged for 11 Dangote Sugar shares, totaling 2,428,651,847 new ordinary shares of Dangote Shares.
Also, every 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. And if the merger is successful, the total fully paid-up shares of the combined entity will come to 17,351,322,596.