Merger: Dangote Sugar, Savannah Sugar get regulatory approval
The Nigerian Stock Exchange (NSE) has approved the business combination between Dangote Sugar Refinery (DSR) Plc and Savannah Sugar Company Limited.
With the approval, a total of 146.878 million ordinary shares of Dangote Sugar Refinery will be issued to shareholders of Savannah Sugar Company Limited. The shares will be subsequently added to the shares outstanding in the name of DSR at the NSE.
Dangote Sugar is Nigeria’s largest producer of household and commercial sugar with 1.44 million metric tonnes refining capacity at the same location. The refinery located at Apapa WharfPorts Complex, refines raw sugar to white, Vitamin A fortified refined granulated white sugar suitable for household and industrial uses.
Its subsidiary, Savannah Sugar Company Limited, located at Numan, in Adamawa State, is an integrated sugar production facility, with an installed factory capacity of 50,000 tonnes. Covering 32,000 hectares, the Savannah Estate has considerable opportunity for expansion, which is underway as part of the Dangote Sugar for Nigeria Project campaign.
DSR has explained that its backward Integration goal is to become a global force in sugar production, by producing 1.5 metric tonnes per annum of refined sugar from locally grown sugar cane for the domestic and export markets in 10 years.
As part of its backward integration project, DSR had strengthened its group with incorporation of four other companies, including Nasarawa Sugar Company Limited, Dangote Taraba Sugar Limited, Dangote Adamawa Sugar Limited and Dangote Niger Sugar Limited. The new companies have a combined landmass for agriculture of about 110,000 hectares.
The greenfield sites like Savannah Sugar, will be integrated sugar production facilities with new plantation and modern facilities that are located closer to the consumers.