Three subsidiaries of Dangote Group have reached an agreement to merge and become one operating entity under the group while maintaining their respective line of operations.
The subsidiaries are the Dangote Sugar Refinery Plc (DSR), Nascon Allied Industries Plc and Dangote Rice Limited (DRL).
According to a filing at the Nigerian Exchange Limited (NGX) on Thursday, the merger scheme still awaits Regulatory Approval.
The deal is described as an internal restructuring to be executed through a Scheme of Merger, under Section 711 of the Companies & Allied Matters Act, 2020 (as amended) and other applicable rules and regulations.
Recall that Dangote Sugar Refinery Plc had on July 31, 2023 announced the plan to keep its shareholders, market regulators and the investing public abreast of the proposed merger.
Meanwhile, the consideration that will be offered to shareholders of NASCON and Dangote Rice Limited would give rise to additional 5.2 billion shares of Dangote Sugar Refinery.
It has been proposed that 11 ordinary shares of 50 Kobo each in DSR, credited as fully paid-up shares would go for every 12 NASCON shares of 50 Kobo each, which totals 2,428,651,847 new ordinary shares of DSR.
Similarly, 14 ordinary shares of 50 Kobo each in DSR, credited as fully paid-up shares would translate into One ordinary share of N1.00 Kobo each in DRL share, which totals 2,775,792,508 new ordinary shares of DSR.
“The Terms and Conditions of the Merger as agreed by the parties will be presented to the Securities and Exchange Commission (SEC) and subsequently the Company’s shareholders at the Court-Ordered Meeting,” the filing stated.
The statement further read: “The Company will now proceed to apply to the SEC for the approval of the Scheme, and subject to the approval of the SEC, will apply to the Federal High Court for an Order to convene a meeting of its Shareholders to consider the Scheme.
“Shareholders of the Company are advised to exercise caution when dealing with the shares of the Company until a further announcement is made.”
