Business
Dangote Sugar set for Savannah Sugar takeover
The shareholders of Dangote Sugar Refinery PLC and Savannah Sugar Company Limited will on 9th July meet to consummate a merger deal.
Dangote Sugar said in a statement on Tuesday signed by the company’s solicitors, Olaniwun Ajayi LP, that the regulatory approvals from both the Securities and Exchange Commission and the court had been secured with only the shareholders’ approval outstanding.
Dangote Sugar had in 2019 revealed that its board of directors recommended the merger of the two firms through a scheme of external restructuring.
The sugar-maker in 2013 acquired 95% interest in Savannah Sugar, intended at solidifying its position as the leader in the sugar trade in the country.
Read also: Dangote Sugar’s Q1 profit sheds N632m despite bigger revenue amidst spiralling production cost
If the scheme succeeds, Dangote Sugar will be “authorised to receive all the assets (including all tax attributes, unutilised capital allowances, tax losses, withholding tax credits and any other tax refunds available subject to the approval of the FIRS), liabilities and business undertakings, including real property and intellectual property rights of Savannah Sugar Company Limited (“SSCL”) transferred by SSCL to the Company (pursuant to the Scheme of Arrangement between SSCL and its shareholders) upon the terms and subject to the conditions set out in the Scheme of Arrangement without any further act or deed.”
Similarly, the liabilities and business undertaking together with the real property and intellectual property rights of Savannah Sugar will be transferred to Dangote Sugar by reason of the merger.
146,878,241 common stocks of N0.50 each in the share capital of Dangote Sugar will be issued and allotted to the shareholders of Savannah Sugar.
The scheme shareholders of 162,756,968 ordinary shares in Savannah Sugar will be credited as fully paid at the close of business on the terminal date.
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