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Friday, September 22, 2023

Dangote Foods to Have 17.35 billion Shares as Merger Terms Outlined

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Dangote Sugar Refinery Plc has notified the Nigerian Exchange Limited and the investing public that the Merging Entities have agreed the terms and conditions of the Merger of the Company with NASCON Allied Industries Plc, (NASCON) and Dangote Rice Limited (DRL).

The new entity to be known as Dangote Foods will have 17.35 billion shares outstanding according to MoneyCentral calculations.

This is part of 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.

The consideration that will be offered to shareholders of NASCON and DRL is as follows: Scheme Consideration Eleven (11) ordinary shares of 50 Kobo each in DSR, credited as fully paid-up shares, for every Twelve (12) NASCON shares of 50 Kobo each, which totals 2,428,651,847 new ordinary shares of DSR; and Fourteen (14) ordinary shares of 50 Kobo each in DSR, credited as fully paid-up shares, for every One (1) ordinary shares 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. Approvals and Proposed Court -Ordered Meeting 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.

Dangote Sugar has been rallying on positive sentiment around the deal and the stock is up 263% year to date.

Shareholders of the Company are advised to exercise caution when dealing with the shares of the Company until a further announcement is made.

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