Dangote Sugar acquires 75% stake in Savannah Sugar

Dangote Sugar acquires 75% stake in Savannah Sugar

August 14 , 2008
 

PETER OBIORA

Proshare NI

August 14, 2008 at 08:47 GMT

Dangote Sugar Refinery Plc is to acquire 75 percent stake in Savannah Sugar Company Limited to boost local production and reduce cost of importation of raw sugar.

Engr. Abdullahi Sule, Managing Director/Chief Executive Officer (MD/CEO) of Dangote Sugar confirmed this in LagosNigeria at the presentation of the company’s “Facts behind the Figures†at the Floors of the Nigerian Stock Exchange (NSE).

“Dangote Sugar Refinery would indeed acquire 75 percent of the company in order to boost its operations†he said.

Sule affirmed that an integrated sugar company like Savannah Sugar would employ not less than 12,000 to 13,000 Nigerians by the time it is producing about 400 metric tonnes of Sugar.

Dangote Sugar Refinery market research affirms that the company has over 70 percent of the domestic sugar sales market share.

The acquisition of the Savannah Sugar Company is part of the Dangote Sugar Refinery’s goal is to become a global, integrated, low cost sugar producer focused on maximising long-term shareholder returns while establishing a leading presence in domestic and regional African markets, with increasing international focus.

As earlier reported, Dangote Sugar Refinery in its Half Year result released on the Floors of the NSE made a Profit before Tax (PBT) of over N17 billion.

The company has also proposed to give interim dividend of 85 Kobo to its investors, “we are giving over N10 billion back to the shareholders in the form of dividend. Dangote Sugar is giving 85 Kobo per share interim dividend†Sule said.


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