Dangote’s rice and sugar companies seek SEC approval for merger

Aliko Dangote’s companies, Dangote Sugar Refinery, NASCON Allied Industries Plc and Dangote Rice Limited, have informed shareholders that they want to merge their operations.

Dangote Sugar disclosed in a statement on Monday that the company will seek shareholders’ approval and that of the capital market authority, Securities and Exchange Limited (SEC), before proceeding with the merger.

The company revealed that the merger was adopted after the board of directors’ meeting on July 28, 2023, “Dangote Sugar Refinery Plc (the “Company”) hereby notifies the Nigerian Exchange Limited and the investing public that the Board of Directors of the Company at its meeting held on July 28, 2023 resolved to recommend the proposed merger between the Company, NASCON Allied Industries Plc (“NASCON”) and Dangote Rice Limited (“DRL”) to the Shareholders of the Company for consideration and approval, subject to parties agreeing terms and conditions.

“The Company, NASCON & DRL hereinafter referred to as the “Merging Entities” are all subsidiaries of Dangote Industries Limited (the “Group”),” the statement reads.

According to Dangote Sugar, the merger between the three companies, largely owned by billionaire, Dangote, will consolidate and solidify the Group’s market position and ultimately reposition the Group to harness future opportunities in the food industry.

Dangote Sugar Refinery, NASCON Allied Industries Plc and Dangote Rice Limited merger will be an internal restructuring 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 companies are still deciding on the terms and conditions of the merger, and they will hold court-ordered meetings to obtain approval for the completion of the transaction.

“The Company will apply for the Securities and Exchange Commission’s approval of the Scheme, and other requisite approvals.

“The Scheme is also subject to the approval of the Shareholders of the Merging Entities at the respective Court-Ordered Meetings of the companies, as well as the sanction of the Federal High Court,” Dangote Sugar said.

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