Dangote Sugar Refinery Plc has been authorised to receive all the assets, liabilities and business undertakings, as well as property rights of Savannah Sugar Company Limited.
This was one of the resolutions passed at the court-ordered meeting of the members of DSR over the weekend at the Eko Hotels & Suites, Victoria Island, Lagos.
The notice of the proceedings sent to the Nigeria Stock Exchange read in part, “Dangote Sugar Refinery is hereby authorised to receive all the assets (including all tax attributes, unutilised capital allowances, tax losses, withholding tax credits and any other tax refunds available subject to the approval of the Federal Inland Revenue Service), liabilities and business undertakings, including real property and intellectual property rights of Savannah Sugar Company Limited ‘SSCL’ transferred by SSCL to the Company (pursuant to the Scheme of Arrangement between SSCL and its shareholders) upon the terms and subject to the conditions set out in the Scheme of Arrangement without any further act or deed.”
Henceforth, according to the notice, DSR will assume all legal proceedings, pending or contemplated, by or against SSCL.
In view of this acquisition, the court also ordered DSR to issue and allot to the shareholders of SSCL 146,878,241 ordinary shares of N0.50 each in the share capital for the 162,756,968 ordinary shares held by the Scheme Shareholders in SSCL.
The document dated Friday, May 29, 2020, was also approved at the meeting, and directors of DSR were authorised to consent to any modifications that the Securities and Exchange Commission may deem fit, and give effect to the scheme.
DSR had earlier sent a disclosure notice to the NSE, announcing its plans to acquire SSCL, subject to the approval of the two companies’ shareholders.
Dangote industries recently sold its flour subsidiary, and this acquisition is part of an expansion strategy for DSR, and the next stage of its backward integration plan to revolutionise the sugar sub-sector of Nigeria’s economy.