- Dangote Sugar Refinery is set to acquire Savannah Sugar Company Limited following the authorisation to acquire all of SSCL’s assets, liabilities, business undertakings and property rights.
- The Company had previously announced its plans to acquire the sugar company, which it stated was subject to the approval of the company’s shareholders.
- The objective is to deliver the annual production potential of 1.5 – 2.0 million tons of refined sugar from sugarcane plantations covering more than 150,000 hectares of land across a range of Nigerian sites.
Dangote Sugar Refinery is scheduled to complete the acquisition of Savannah Sugar Company Limited after receiving the necessary authorisation to acquire all SSCL’s assets, liabilities and business undertakings, and property rights.
The resolution was adopted at a court-ordered meeting of Dangote Sugar representatives held Thursday in Lagos, the company said in a notice of the proceedings submitted to the Nigeria Stock Exchange.
The company had previously sent a notice of announcement on the acquisition plans to the stock exchange, subject to approval by all company shareholders. Dangote will now assume all the ongoing or expected legal proceedings, claims and litigation matters by or against Savannah Sugar, it said.
Dangote will also issue and distribute 146,878,241 ordinary shares of 0.50 each in the share capital to the shareholders of Savannah sugar for the 162,756,968 ordinary shares owned in SSCL by the Scheme Shareholders under the court order on the contract.
The acquisition comes after Dangote Industries, the parent company of the sugar refinery, recently sold its flour subsidiary. It is part of an expansion strategy for the sugar unit, and the next stage of its backward integration plan to revolutionize the sugar sub-sector of Nigeria’s economy.
The acquisition comes after Dangote Industries, the parent group of the sugar refinery, recently sold its flour subsidiary. It is part of the sugar unit’s expansion strategy, and the next step of its backward integration programme to revolutionize the Nigeria economy’s sugar sub-sector.
Dangote Sugar Refinery acts as an integral part of the National Sugar Production Master Plan of the Nigerian government. Dangote Sugar dedicated to becoming an integrated sugar company in 2012, serving local and export markets throughout Nigeria from integrated sugarcane plantations and factories over the next 10 years.
The objective is to deliver the annual production potential of 1.5 – 2.0 million tons of refined sugar from sugarcane plantations covering more than 150,000 hectares of land across a range of Nigerian sites, according to data on the company’s website. “This will move Dangote Sugar from port-based refining to fully integrated sugar production within Nigeria, thereby helping Nigeria to achieve self-sufficiency in sugar production,” it said.