Dangote Sugar Seeks N21.2b from Capital Market
By Modupe Gbadeyanka
Management of Dangote Sugar Refinery has expressed its intention to source for N21.2 billion from the capital market through equity injection before the end of this year.
The amount, the firm said, would form part of the N106 billion budgeted to finance its operations within the next six years, aimed at achieving the Dangote Sugar Master Plan, which is in two phases; targeting production of 690,000 MT of sugar across five northern sites, and production of 881,000 MT of sugar and creation of 75,000 jobs.
At the company’s ‘facts behind the figure’ presentation at the Nigerian Stock Exchange (NSE), its Group Managing Director, Mr Abdullahi Sule, stated that the Board of Directors was in the process of coming up with the best way to go about the exercise.
According to Mr Sule, “Dangote Sugar has sizeable amount of cash and we are a zero debt company.”
He noted that, “For the first three year, we are planning to spend about N106 billion on projects of which 20 percent will be spent on equity, which should be achieved before the end of this year.
“For now, we are yet to decide on whether to hold an Extra-ordinary General Meeting (EGM) to raise the grant or through loan.”
Observers have stressed that the process would be successful based on the fact that since Dangote Sugar joined the market, it had always paid good dividends to its shareholders.