NIGERIA – Dangote Sugar Refinery, Nigeria’s largest sugar processor has completed the acquisition of rival Savannah Sugar Company, a move that has further cemented its position as the top sugar refiner in sub-Saharan Africa.
A statement from Dangote Sugar revealed that the sugar processor had received the final approval from its shareholders early this month to complete the acquisition of its competitor in the sugar manufacturing industry.
The statement from Dangote Sugar had explained that the acquisition was sought in a bid to enhance the processor’s production capacity and further increase its market share.
Following the approval, Dangote Sugar Refinery notified the Nigeria Stock Exchange of the development says that the refinary “has been authorised to receive all the assets, liabilities and business undertakings, and property rights of Savannah Sugar Company Limited (SSCL).”
In view of this acquisition, Dangote Sugar Refinery will be required by law to issue and allot to the shareholders of Savannah sugar, 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.
Dangote industries recently sold its flour subsidiary, Dangote Flour Mills to Crown Flour Mills, subsidiary of multinational grain giant, Olam International.
The US$331 million deal doubled Crown Flour Mill’s production capacity, adding five flour mills into the company’s production capacity in Nigeria.
After the divestment of the milling business, the acquisition of Savannah Sugar becomes part of an expansion strategy for Dangote Sugar Refinery, and the next stage of its backward integration plan to revolutionize the sugar sub-sector of Nigeria’s economy.
Savannah Sugar Company, unlike many of Nigeria’s sugar refinery company, grows its own sugar cane in its 6.750 hectors of land located in Numan, Nigeria.
The company’s which was started in 1971, has a milling capacity of 50,000 tonnes of sugar per annum and would be thus a great addition to DSR’s manufacturing portfolio.
Chairman of the company, Aliko Dangote said Dangote Sugar Refinery, a top tier player in the industry with installed capacity to produce 1.44 million metric tonnes per annum, will be leveraging on Savannah Sugar’s sugarcane production capacity to enhance its production capacity.
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