• Friday, June 14, 2024
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Dangote Sugar suspends merger with NASCON, Dangote rice

Dangote Sugar suspends merger with NASCON, Dangote rice

Dangote Sugar Refinery Plc, an integrated sugar business in Nigeria has announced the temporary suspension of its proposed merger with Nascon Allied Industries and Dangote Rice before the announcement made nine months ago.

This was disclosed in a statement by the company on Wednesday signed by the company’s secretary, Temitope Hassan.

Dangote Sugar Refinery Plc wishes to provide an update to the Nigerian Exchange Limited and the investing public further to its announcement of July 31, 2023, on the Merger of the Company with NASCON Allied Industries Plc. (NASCON) and Dangote Rice Limited (DRL) vide an internal restructuring to be executed through a Scheme of Merger (Scheme), under Section 711 of the Companies & Allied Matters Act, 2020 (as amended) and other applicable rules and regulations,”  the statement said.

Read also: Dangote Sugar, NASCON, Dangote Rice merger suspended

It added that the suspension was a sequel to the recommendations of the Securities and Exchange Commission (SEC) on the status of the DRL.

However, Dangote Sugar announced to the Nigerian Exchange Limited (NGX) the merger between NASCON Allied Plc and Dangote Rice Limited on July 31, 2023, after the endorsement of the board of directors approved by NASCON’s board on July 28.

According to the statement, the merger as an internal restructuring will proceed after agreeing to the terms and conditions of both parties.

“The merger pending regulatory and shareholder approvals needs the approval from the SEC for the merger scheme,” the statement said.

Dangote Sugar Plc aims to produce 1.5 million tonnes of refinery sugar every year from locally grown sugarcane within the next ten years, to serve local and export markets from factories and plantations across Nigeria.