Makers of Dangote Salt and Seasoning, NASCON Allied Industries, has announced a proposed merger with two other companies, Dangote Sugar Refinery Plc and Dangote Rice Limited.
This was disclosed in a corporate notice filed on the Nigerian Exchange Limited on Thursday indicating a closed period ahead of the company’s next board meeting.
The company said, “The meeting of the Board of Directors of the Company scheduled to be held on Tuesday, July 25, 2023, will in addition to the Unaudited Financial Statements of the Company for the Half Year ended June 30, 2023 (H1, 2023 Results) consider the proposed merger of the Company with Dangote Sugar Refinery Plc and Dangote Rice Limited.”
During closed periods, all insiders are prohibited from dealing in the shares of a listed company.
Based on post-filing requirements, one of the parties to the merger, Dangote Sugar Refinery Plc, also revealed that its directors will be considering the proposed merger at its next board meeting scheduled to hold later this month.
“The meeting of the Board of Directors of the Company scheduled to be held on Friday, July 28, 2023, will in addition to the Unaudited Financial Statements of the Company for the Half Year ended June 30, 2023 (H1, 2023 Results) consider a proposed merger of the Company with NASCON Allied Industries Plc and Dangote Rice Limited,” part of the notice said.
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 N3.0bn achieved in 2021. Earnings per share also increased to N2.06 in 2021 compared to N1.12 in 2021.