An application filed by Dangote Sugar Refinery Plc for its merger with Savannah Sugar Company Limited has been approved by the Nigerian Stock Exchange (NSE).
The application was for an approval to list 146,878,241 ordinary shares of 50 kobo each arising from a Scheme of Merger between Dangote Sugar Refinery and Savannah Sugar Company Limited.
It was submitted by the stockbroker for Dangote Sugar, Vetiva Securities Limited, and was approved by the NSE on Friday, March 20, 2020, according to a document from the exchange.
Standard Chartered Capital and Advisory Nigeria Limited acted as the joint issuing houses for the transactions, while Vetiva Capital Management Limited was the financial adviser to the deal.
Dangote Sugar hopes to acquire all assets, liabilities and undertakings of Savannah Sugar, one of its subsidiaries.
The company wants all the issued share capital of Savannah Sugar to converted to Dangote Sugar Refinery as the surviving entity.
Savannah Sugar operates from Numan in Adamawa State with a milling capacity of 50,000 tonnes of sugar per annum.
In February 2013, Dangote Sugar acquired 95 percent equity stake in Savannah Sugar in a bid to maintain its dominant position in the Nigerian sugar industry.
The deal was executed through a Share Sale and Purchase Agreement with the acquisition of 2.14 billion ordinary shares of N1.00 each in Savanna Sugar.
