Dangote Sugar Market Value Rises Sharply on Merger Updates
Dangote Sugar Refinery Plc’s market value rose sharply on merger updates released following updates on the proposed merger with NASCON Allied Industries and Dangote Rice Limited, stock market data review by MarketForces Africa showed.
Further to the initial uptick, the company’s share price gained traction as alpha seekers, and value hunters trading highs and lows pumped funds into the consumer goods stock.
At the close of the trading session on Friday, the sugar refinery market value surged to about N735 billion as the local bourse continued to outperform emerging market peers. In the last seven trading sessions, the stock has gained 37.5% from N44 per share to N60.5 on Friday due to increased positioning by retail investors in the local bourse, MarketForces Africa check shows.
Dangote Sugar Refinery has gained 277% from the beginning of the year to date. A significant part of the gain was driven by its popularity in the stock market in the last six months. Basically, Dangote Sugar began its journey into the market movers group on the NGX with a 210% gain over the last six months.
In a regulatory filing, Dangote Sugar Refinery Plc told the Nigerian Exchange Limited and the investing public that further to its announcement of July 31, 2023, the Merging Entities have agreed on the terms and conditions.
The Refinery is in the middle of a plan to merge with NASCON Allied Industries Plc. and Dangote Rice Limited which is an internal restructuring to be executed through a Scheme of Merger
The notice said the consideration detailed 11 shares of Dangote Sugar would be offered for 12 shares in NASCON. Also, Dangote Sugar will offer 11 shares for 14 shares in DRL.
The notice added that the Terms and Conditions of the Merger as agreed by the parties will be presented to the Securities and Exchange Commission (SEC) and subsequently the Company’s shareholders at the Court-Ordered Meeting.
Dangote Sugar Refinery said it will proceed to apply to the SEC for the approval of the Scheme, and subject to the approval of the SEC, will apply to the Federal High Court for an Order to convene a meeting of its Shareholders to consider the Scheme. #Dangote Sugar Market Price Rises Sharply on Merger Updates Dangote Sugar Attracts Attention, Gains 36% Amid Merger Plan