Nascon Allied Industries Plc (NASCON) says it has suspended its proposed merger with Dangote Sugar Refinery Plc and Dangote Rice Ltd.
Mr A. A. Samuel, Company Secretary, NASCON, disclosed this in a notification sent to the Nigerian Exchange Ltd.(NGX) on Thursday in Lagos.
Samuel said that the move was in furtherance to its announcement of Aug. 30, 2023 in respect of the proposed merger.
He said: “The suspension is due to the comments and recommendation of the Securities and Exchange Commission (SEC) centered around the current non-operational status of Dangote Rice Ltd.
“NASCON wishes to express its appreciation to all its stakeholders and will keep the public informed of any developments as they arise.
The News Agency of Nigeria (NAN) reports that Dangote Sugar, in an announcement to the NGX and the investing public, confirmed on July 31, 2023 its plan to merge with NASCON and Dangote Rice, which are all subsidiaries of Dangote Industries Ltd.
The proposed merger, which was set to be executed as an internal restructuring via a Scheme of Merger, is subject to agreement on terms and conditions by all involved parties.
Dangote Sugar had earlier said it would apply for SEC’s approval of the scheme.
Although, the merger is also contingent on approvals from shareholders at the respective Court-Ordered Meetings and the sanction of the Federal High Court.
Dangote Sugar highlighted that the merger would consolidate and strengthen the Group’s market position and lay the foundation to take advantage of future opportunities in the food industry
