Dangote Sugar Refinery has announced the suspension of its proposed merger with Dangote Rice Limited and Nascon Allied Industries plc for the time being.
The company disclosed this in a statement on the NGX signed by its Secretary, Temitope Hassan, stating that the merging entities have agreed to suspend the proposed merger for now.
The statement noted that the suspension of the exercise was sequel to the recommendations of the Securities and Exchange Commission (SEC) on the status of the DRL.
- What the company is saying “Dangote Sugar Refinery Plc (the “DSR or Company”) wishes to provide an update to the Nigerian Exchange Limited and the investing public further to its announcement of July 31, 2023, on the Merger of the Company with NASCON Allied Industries Plc. (“NASCON”) and Dangote Rice Limited (“DRL”) vide an internal restructuring to be 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.”
- “Given the recommendation of the Securities & Exchange Commission (SEC) on the status of DRL, the Merging Entities have agreed to suspend the merger for the time being.”
Recommended reading: Dangote Sugar crosses the N1 trillion market cap level
Backstory
About nine months ago, Nairametrics reported that Dangote Sugar Refinery Plc had announced to the Nigerian Exchange Limited and the investing community its intention to merge with NASCON Allied Industries Plc. and Dangote Rice Limited. This announcement was made on July 31, 2023, following the board of directors endorsement on July 28, which coincided with NASCON’s board approving the merger.
The merger is intended as an internal restructuring and will proceed only if all terms and conditions are agreed upon by the involved parties, which include: Dangote Sugar Refinery, NASCON, and Dangote Rice Limited, all subsidiaries of Dangote Industries Limited.
This initiative mirrors an earlier statement from NASCON, which indicated that the merger was pending regulatory and shareholder approvals. Dangote Sugar will seek approval from the SEC for the merger scheme.
Recommended reading: NASCON suspends proposed merger with Dangote Rice Limited
