Dangote equities fetch investors N1.2tn profit in 2 days

Investors in stocks of companies listed under the Dangote Group have gained over 1.2tn during the first two trading sessions of this week.

This sentiment in stocks of Dangote group is triggered by the commencement of the production by the Dangote Petrochemical Refinery.

The listed companies sparking interest are; Dangote Cement Plc, Dangote Sugar Refinery Plc and NASCON Allied Industries Plc; the latter companies are in the middle of a merger with another firm, Dangote Rice Limited.

In August, it was revealed that the firms had agreed to integrate into a single entity. The merger will be executed courtesy of “a scheme of merger under Section 711 of the Companies & Allied Matters Act, 2020 (as amended) and other applicable rules and regulations,” Dangote Sugar said in a statement.

READ ALSO:650,000 bpd Dangote Refinery begins operation

Through the scheme consideration, 12 ordinary shares in NASCON will be exchanged for 11 Dangote Sugar shares, totalling 2,428,651,847 new ordinary shares of Dangote Shares. The three companies are all members of the conglomerate Dangote Industries Limited controlled by Africa’s richest man Aliko Dangote.

On Friday, Dangote Cement closed trading with a market cap of N5.964tn, Dangote Sugar was worth N828.417bn and NASCON was valued at N158.966bn.

By the close of trading on Tuesday, Dangote Cement’s capitalisation had risen to N7.018tn with a unit priced at N411.90. Dangote Sugar’s market capitalisation rose to N988.755bn and NASCON Allied appreciated to N189.434bn. The value of the increases across the companies led to a gain of N1.245tn for shareholders in the companies, the largest being in Dangote Cement.

At the close of trading, both Dangote Sugar and NASCON Allied Industries gained 10 per cent to close at N81.40 and N71.50 per unit. NASCON also emerged the most traded security in terms of value resulting in N2.57bn worth of its units traded.

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