NASCON board approves merger with Dangote companies

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

Both NASCON and Dangote Sugar had filed corporate notices on the Nigerian Exchange Limited earlier in July, 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 stating that the board passed resolutions involving the merger and the unaudited financial statements for the second quarter of 2022.

Part of the corporate notice 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.“

Recall that NASCON had weeks back announced the appointment of Thabo Mabe as its substantive Managing Director and Fatima Aliko-Dangote as a non-executive director.

For the financial year ended December 2022, 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 rose by 60.6 per cent to N34.2bn as against N21.3bn declared in 2021.

While gross profit jumped by 105.2 per cent from N12bn in 2021 to N24.5bn in the period under review, operating expenses rose 59.9 per cent to N15.2 bn compared to N9.5 bn in 2021.

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.