1 week ago
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Nascon Allied Industries Plc has suspended the proposed merger with Dangote Rice Limited,
This was contained in a notice to the Nigerian Exchange Limited seen by Nairametrics.
According to the statement signed by A. A. Samuel, Company Secretary, the suspension was based on the current non-operational status of Dangote Rice Limited.
The statement reads:
“Nascon Allied Industries Plc hereby notifies the Nigerian Exchange Limited and the investing public, that further to its announcement of August 30, 2023 in respect of the proposed merger of Dangote Sugar Refinery Plc, Nascon and Dangote Rice Limited, a decision has been taken to suspend the said merger at this time. The suspension is due to the comments and recommendation of the Securities and Exchange Commission (SEC) centered around the current non-operational status of Dangote Rice Limited. Nascon wishes to express its appreciation to all its stakeholders and will keep the public informed of any developments as they arise”.What you should know
Nairametrics reported nine months ago that Dangote Sugar Refinery Plc., in an announcement to the Nigerian Exchange Limited and the investing public, confirmed on July 31, 2023, its plan to merge with NASCON Allied Industries Plc. and Dangote Rice Limited. The board of directors gave its recommendation for the proposed merger on July 28, the same day NASCON’s board approved the same plan.
The proposed merger, which is set to be executed as an internal restructuring, is subject to agreement on terms and conditions by all involved parties, namely Dangote Sugar Refinery, NASCON, and Dangote Rice Limited. All three firms are subsidiaries of Dangote Industries Limited.
The board’s decision aligns with NASCON’s earlier press release, where the company had outlined a similar plan, noting that the merger was subject to regulatory and shareholder approvals.
Dangote Sugar will apply for the SEC’s approval of the Scheme of Merger, and the merger is also contingent on approvals from shareholders at the respective court-ordered .eetings and the sanction of the Federal High Court.
