The Dangote Group has announced a merger of its subsidiaries, including Dangote Sugar, NASCON, and Dangote Rice, through a scheme of consideration. Here’s what this merger means for shareholders:
For NASCON Shareholders:
- For every 12 NASCON shares of 50 Kobo each that a shareholder owns, they will receive 11 ordinary shares of 50 Kobo each in Dangote Sugar Refinery (DSR).
- If you own 100 shares of NASCON, you will receive approximately 92 shares in DSR.
- If you own 200 shares of NASCON, you will receive approximately 183 shares in DSR.
- NASCON will cease to exist as a separate company, and its shareholders will become DSR shareholders.
For Dangote Rice Limited (DRL) Shareholders:
- For every 1 ordinary share of N1.00 Kobo each in DRL that a shareholder owns, they will receive 14 ordinary shares of 50 Kobo each in DSR.
- If you own 100 shares of DRL, you will receive approximately 1,400 shares in DSR.
- If you own 250 shares of DRL, you will receive approximately 3,500 shares in DSR.
- DRL will cease to exist as a separate company, and its shareholders will become DSR shareholders.
For Dangote Sugar Refinery Shareholders:
- The shareholders of Dangote Sugar Refinery will be diluted by 2,428,651,847 new ordinary shares for NASCON and 2,775,792,508 new ordinary shares for DRL, totaling 5,204,444,355 shares of Dangote Sugar Refinery shares.
- This will increase the total outstanding shares of Dangote Sugar Refinery by 5,204,444,355 shares, or approximately 42.8%.
- Despite this dilution, the market value of the company is expected to increase.
Overall, this merger will result in the consolidation of these Dangote Group subsidiaries into Dangote Sugar Refinery, streamlining the ownership structure and potentially increasing the market value of the company. Shareholders of NASCON and DRL will become shareholders of DSR as their respective companies cease to exist as separate entities.