SEC Blocks NASCON, Dangote Sugar, Dangote Rice Merger

By Aduragbemi Omiyale

The proposed merger among NASCON Allied Industries Plc, Dangote Sugar Refinery Plc, and Dangote Rice Limited has been suspended.

The unification of the trio into an entity was disrupted by the observation of the Securities Exchange Commission (SEC) on the operational status of Dangote Rice Limited.

Business Post reports that the three organisations are controlled by a single person, Mr Aliko Dangote, the richest man in Africa.

He intends to make the firms operate as an entity for more efficiency, but as things stand, he might have to wait longer than expected.

In a regulatory note to the Nigerian Exchange (NGX) Limited on Thursday, NASCON said SEC, the apex regulator in the Nigerian capital market, pointed to the “non-operational status” of the rice company.

“NASCON 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 centred 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,” the short statement stated.

After agreeing to the merger terms last August, an application was filed to SEC, with the intent that after approval, another application would be filed to “the Federal High Court for an order to convene a meeting of its shareholders to consider the scheme.”

Based on what was agreed, 11 ordinary shares of Dangote Sugar will be swapped for 12 NASCON shares, totalling 2,428,651,847 new ordinary shares of Dangote Sugar.

Also, 14 ordinary shares of Dangote Sugar will be exchanged with one ordinary share of N1.00 each in Dangote Rice, totalling 2,775,792,508 new ordinary shares of Dangote Sugar.