TheCable

Nascon Allied Industries Plc says its proposed merger with Dangote Sugar Refinery has been suspended.

In a statement published on Friday via the Nigerian Exchange Limited (NGX) and signed by A.A. Samuel, Nascon secretary, the merger was not completed due to the current non-operational status of Dangote Rice Limited.

“Nascon Allied Industries Plc. (“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,” Nascon said.

“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.”

On July 31, 2023, Dangote Sugar confirmed plans to merge with Nascon and Dangote Rice, which are all subsidiaries of Dangote Industries Limited.

The proposed merger was to be executed as an internal restructuring through a scheme of merger, and subject to agreement on terms and conditions by all involved parties.

Dangote Sugar had said the merger would consolidate and strengthen the group’s market position and reposition it to take advantage of future opportunities in the food industry.