Merger, NASCON Board Approves Proposal With Dangote Companies

On the proposed merger of the company, The Board of Directors of NASCON Allied Industries Plc has approved the merger with Dangote Sugar Refinery Plc and Dangote Rice Limited, both companies under the Dangote Group.

Earlier in July, both NASCON and Dangote Sugar had filed corporate notices on the Nigerian Exchange Limited revealing the proposal and that it was an agenda for its board at their next meeting.

Following the NASCON board meeting, the company filed another update disclosing that the board passed resolutions including the merger and the unaudited financial statements for the second quarter of 2023.

According to the corporate notice, it part read, “At this meeting, the Board of Directors among other matters, passed the following resolutions: 1. Approval of the Unaudited Financial Statements for the second quarter ended June 30, 2023; 2. Approval to undertake a scheme of merger among the company, Dangote Sugar Refinery Plc and Dangote Rice Limited, subject to the approval of regulators and shareholders.“

Records on the financial year ended December 2022 showed that NASCON recorded revenue growth of 76.6 per cent to N58.8bn from N33.3bn in 2021, supported by growth in salt (up 79.8 per cent) and seasonings (up 50.0 per cent) sales.

Cost of sales increased by 60.6 per cent to N34.2bn as against N21.3bn declared in 2021.

Also, it was noted that Profit after tax increased by 84.1 per cent to N5.5bn for the year, compared to N3bn achieved in 2021. Earnings per share also increased to N2.06 in 2021 compared to N1.12 in 2021.