Business

NASCON board gives green light to merger with Dangote Sugar Refinery

NASCON Allied Industries Plc’s Board of Directors, on Thursday, July 28, 2023, approved a plan to merge with Dangote Sugar Refinery Plc. and Dangote Rice Limited, subject to regulatory and shareholder approvals.

The news comes following Nairametrics’ prior report of a scheduled annual general meeting (AGM) to consider the proposed merger. 

The Board meeting, which took place in Lagos, also led to the approval of NASCON’s Unaudited Financial Statements for the second quarter ended June 30, 2023.

As is standard, the Company will continue its Closed Period until twenty-four hours after the filing of the approved Unaudited Financial Statements. 

During this Closed Period, insiders possessing sensitive information that could materially affect NASCON’s security prices are prohibited from dealing in the company’s securities.  

The merger plan with Dangote Sugar Refinery and Dangote Rice Limited, if successful, promises to create a food conglomerate powerhouse that could reshape the Nigerian food industry.

The trio of companies are all part of the larger Dangote Group, which is among the biggest industrial conglomerates in Africa. 

Further details of the merger have not been disclosed at this time. However, the deal is expected to face rigorous scrutiny from regulators, who will want to ensure that it does not harm competition in Nigeria’s food sector. 

Once the regulatory approvals are granted, the final decision on the merger will be up to the shareholders of NASCON, Dangote Sugar Refinery, and Dangote Rice Limited. 

The announcement was made in a statement issued by the company after a board meeting held on July 28, 2023, where it also approved its unaudited financial statements for the second quarter ended June 30, 2023.

According to the statement, the company recorded a 48% increase in turnover, from N14.3 billion in 2022 to N21.2 billion in 2023, and a 212% increase in profit after tax, from N1.3 billion in 2022 to N4.1 billion in 2023. 

Nairametrics will continue to monitor the story closely and provide timely updates on any new developments.