Status Report on Union Dicon Salt Plc

Proshare

Wednesday, February 27, 2019 09:15AM / NSE

 

In 2014, Union Dicon Salt Plc (Union Dicon or the Company) announced CBO Capital Partners (CBO Capital) as the new core investor and a significant minority shareholder in the Company, affording CBO Capital the right of Management Contract to turn the Company around. Forty one million (41,000,000) shares representing 15% of the issued share capital of Union Dicon was listed in favour of CBO Capital. Consequently, Chuka Mordi and Bex Nwawudu both of CBO Partners were announced as Managing and Deputy Managing Directors of Union Dicon.

CBO Capital commenced the diversification of the Company from its core business of salt production to agribusiness and announced several deals and partnerships in the agricultural sector including; Partnership with the Delta State Government in cassava production, investment in the $100m Alape Staple Crop Processing Zone (SCPZ) in Kogi State, Agreement with PNG Gas in Delta State to supply gas to its proposed starch processing plant in Umutu in Delta State and acquisition of several hectares of land in Edo state.

Below is the status of the above deals and partnership agreements entered into by Union Dicon Salt Plc


Acquisition of Land in Edo State

In its effort to become a fully integrated Agro Industrial National champion, the former management of Union Dicon Salt signed terms for another investment in the Agro Industrial sector. In addition to its earlier agreement for its land acquisition of 15,000 Hectares of land in Edo State, this investment added 2,000 Hectares to its land portfolio, and was expected to make Union Dicon the largest Cassava producer in Nigeria. However the C of O of the land was revoked by the Edo State Government because the ground rent to be paid was not brought to the notice of the Board of Union Dicon by the past management led by CBO Capital.


Union Dicon Salt Plc/Kogi Project

The past Management of Union Dicon led by CBO Capital did inform the Board of their intention to replace Cargill as core investor in $100m Alape Staple Crop Processing Zone (SCPZ). This project was eventually not achieved by the time CBO Capital left the Management of Union Dicon in 2017.


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