The activities of Aliko Dangote’s enterprises, Dangote Sugar Refinery, NASCON Allied Industries Plc, and Dangote Rice Limited, will be merged, the companies have told shareholders.
In a statement released on Monday, Dangote Sugar said that before moving forward with the merger, the business will first seek permission from its shareholders and the capital market regulator Securities and Exchange Limited (SEC).
The company revealed that the merger was adopted after the board of directors’ meeting on July 28, 2023, “Dangote Sugar Refinery Plc (the “Company”) hereby notifies the Nigerian Exchange Limited and the investing public that the Board of Directors of the Company at its meeting held on July 28, 2023, resolved to recommend the proposed 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 to terms and conditions.
“The Company, NASCON & DRL hereinafter referred to as the “Merging Entities” are all subsidiaries of Dangote Industries Limited (the “Group”),” the statement reads.
Dangote Sugar claims that the combination of the three businesses, which are all substantially controlled by the billionaire Dangote, would strengthen and consolidate the Group’s market position and eventually situate the Group to take advantage of emerging possibilities in the food sector.
A Scheme of Merger (“Scheme”) will be used to internally restructure the Dangote Sugar Refinery, NASCON Allied Industries Plc, and Dangote Rice Limited in accordance with Section 711 of the Companies & Allied Matters Act, 2020 (as amended), as well as other relevant laws and regulations.
The firms will undertake court-ordered discussions to acquire clearance for the completion of the acquisition while they still decide on the specifics of the merger.
“The Company 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,” Dangote Sugar said.