Dangote Sugar Refinery Plc, in an announcement to the Nigerian Exchange Limited, has disclosed that its planned merger with NASCON Allied Industries Plc and Dangote Rice Limited would be completed via a “scheme of consideration”.
In a press release signed by Company Secretary, Mrs. Temitope Hassan, the company disclosed the condition under which the merger would be completed.
Here’s an excerpt from the statement:
- Dangote Sugar Refinery Plc (the “DSR or Company”) hereby notifies the Nigerian Exchange Limited and the investing public that further to its announcement of July 31, 2023, the Merging Entities have agreed the terms and conditions of the Merger of the Company with NASCON Allied Industries Plc. (“NASCON”) and Dangote Rice Limited (“DRL”) which is 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.
- “Eleven (11) ordinary shares of 50 Kobo each in DSR, credited as fully paid-up shares, for every Twelve (12) NASCON shares of 50 Kobo each, which totals 2,428,651,847 new ordinary shares of DSR;
- Fourteen (14) ordinary shares of 50 Kobo each in DSR, credited as fully paid-up shares, for every one (1) ordinary shares of N1.00 Kobo each in DRL share, which totals 2,775,792,508 new ordinary shares of DSR.”
SEC Approval
Dangote Sugar Refinery also disclosed that it would now proceed to the Securities and Exchange Commission (SEC) to get approval for the scheme merger and, afterwards proceed to the Federal High Court to get a court order to convene a meeting of its Shareholders to consider the Scheme.
Shareholders of the Company were advised to exercise caution when dealing with the shares of the Company until a further announcement is made.
Backstory
Nairametrics reported that Dangote Sugar Refinery Plc had received approval from its board of directors as regards its plan to merge with NASCON Allied Industries Plc. and Dangote Rice Limited.
Dangote Sugar highlighted that the merger would consolidate and strengthen the Group’s market position and lay the foundation to take advantage of future opportunities in the food industry.