Union Dicon Salt Faces NGX Delisting as Major Shareholder Remains AWOL

By Adedapo Adesanya

Union Dicon Salt Plc is facing a fresh regulatory hurdle on the Nigerian Exchange (NGX) Limited, with the salt manufacturer required to complete its business restructuring by November 2026 to avoid further scrutiny that could lead to delisting from the bourse.

The company is one of four issuers on the NGX Delisting Watchlist, according to the exchange’s October 23, 2026 X-Compliance Report, which also identified five other companies undergoing restructuring, bringing the total number of firms under the two categories of regulatory monitoring to nine.

Although Union Dicon has resolved its outstanding compliance deficiencies and now meets the free-float requirements for companies listed on the NGX Main Board, it has yet to complete its wider business restructuring and fulfil other post-listing obligations by the stipulated deadline.

The NGX Regulation Limited (NGX RegCo) said failure to meet the November deadline would lead to a review by the appropriate committee and its board, although the deadline does not automatically trigger compulsory delisting.

“Should the restructuring remain incomplete by the stipulated deadline, the matter will be presented to the appropriate committee and the Board of NGX Regulation Limited (NGX RegCo) for further deliberation,” the exchange stated.

Union Dicon was placed on the watchlist on November 1, 2024, for a two-year period, as part of regulatory efforts to give the company time to address outstanding listing requirements.

The regulatory pressure comes against the backdrop of shareholder communication challenges that have complicated the company’s revival efforts.

In March, Union Dicon disclosed that it had been unable to establish contact with Aims Limited, a Brazilian company holding 64 million shares, representing 40 per cent of its issued share capital, despite repeated attempts.

In a notice to the NGX, shareholders and the investing public, the company invoked Rule 17.5 of the Exchange’s 2015 Rule Book for Issuers to publicly request that Aims Limited contact its management through its corporate office in Kirikiri, Apapa, Lagos, or the office of the company secretary.

Aims Limited is a significant shareholder in the company, which was established in 1984 as a joint venture between the Defence Industries Corporation of Nigeria (DICON) and its technical partner.

The difficulty in reaching the shareholder raised questions about the coordination required to advance the company’s restructuring and recovery plans.

Despite the challenges, Union Dicon has taken steps to restart its operations. Its new management recently announced the commissioning of salt and pepper production facilities after securing the necessary approvals from the National Agency for Food and Drug Administration and Control (NAFDAC), with packaging operations commencing for Dicon Salt and Dicon Hot Pepper.

The resumption of production offers a potential pathway towards rebuilding the business, although the company’s continued listing also depends on satisfying the exchange’s regulatory requirements.

Other companies on the NGX Delisting Watchlist are Critical Minerals Financing Corp Plc, Multi-Trex Integrated Foods Plc and Fortis Global Insurance Plc.

Meanwhile, FTN Cocoa Processors Plc and Thomas Wyatt Nigeria Plc were among the companies undergoing restructuring in the October report, alongside Austin Laz and Company Plc, Pharma-Deko Plc and Premier Paints Plc.

Thomas Wyatt was also flagged for a previous suspension over its failure to submit its 2025 audited financial statements.