Dufil Prima, the company behind the popular Indomie noodles, has signalled intentions to raise N40 billion from Nigeria’s debt markets. Though details about the debt issue have not been released, the company has appointed Stanbic Ibtc as advisers to the transaction.
The company did not reveal much details about the deal and the financing need, however it is likely that it is raising long-term debts to refinance existing debts as well as have some cash on hand to confront emerging competition from the likes of Honeywell and Flourmills of Nigeria.
Back in April 2017, Dangote Flourmills announced that it has exited its noodles business and has sold the assets of Dangote Noodles to Dufil Prima Foods. Dangote Flourmills had said that a business portfolio review revealed that the noodle business was not strategic to its vision.
Capital Raising spree
The first half of 2017 has witnessed a flurry of capital raising exercises mainly from companies in the consumer goods. Unilever also recently announced a N58 billion rights issue and Guinness, Nigeria second largest brewer, also announced it was accessing the markets for a about N40 billion in rights issues.
Lafarge Africa, Nigeria’s second largest Cement Maker also announced it was raising capital via a N140 billion rights issue. UACN, a conglomerate that also owns a consumer goods chain, also announced it planned a N15 billion right issue this year.
Dominating FMGC Manufacturing
Earlier in the year, Kantar Worldpanel’s Brand Footprin ranked Dufil Prima Foods Plc as the number 1 noodle brand in Africa. Dufil Prima Foods Plc, makers of Indomie earned the number one spot in the Fast-Moving Consumer Goods (FMCG) category across Africa, in a research firm’s that covered about 15,000 brands, 200 categories, 44 countries and five continents, representing 74 per cent of the global population.
De United foods commenced operations in 1996 in Ota, Ogun State. The company originally started with production of Indomie noodles, but has since diversified into the production of pasta, cooking oil, and chin chin.
Dufil Prima Ltd was incorporated as a private company in 2001 but following a restructuring, it was registered as a public limited liability company and became the holding company of the group in 2008.