Wednesday, November 13, 2013 /4:00PM /CBO Capital /Press Release
Union Dicon Salt Plc has announced that a new core investor, CBO Capital Partners, has become a significant minority shareholder in the company, and has been given a management contract to turnaround the company. The news was announced to the Nigerian Stock Exchange, on the 13th of November 2013.
Union Dicon Salt (UDS), currently chaired by General T.Y. Danjuma, was established in 1984, and for a considerable period, was the largest producer of salt in Nigeria. It has two factories: one in Lagos and the other in Port Harcourt with a total installed production capacity of 700,000 Metric tons per year.
In a deal valuing the company at N8.40 Billion Naira, CBO Capital Partners has acquired 41,000,000 (Forty One Million) Ordinary Shares of UDS, and has also acquired an option to purchase a further 240,000,000 (Two Hundred and Forty Million) ordinary shares for a consideration of N3,360,000,000 (Three Billion Three Hundred & Sixty Million Naira)
“We are glad to have CBO on board, to rejuvenate this great company, and we shall soon announce a strategy that will involve investment of billions of Naira, over the next 24months” said the Managing Director of Union Dicon Salt, Rtd Colonel Henry Mgbemena.
“CBO Capital is very conscious of the exceptional history of Union Dicon Salt, and we fully intend to take it to greater heights. This is a part of our investment philosophy of “Dedicated to Developing Nigeria”. We are grateful to the board and management of Union Dicon Salt Plc, for their outstanding professionalism during negotiations, and we are proud to become shareholders of this illustrious company” said the Bex Nwawudu, a founding partner of CBO Capital, and new Executive Director designate of Union Dicon Salt.”
The turnaround program for the company is being finalized with the current management of the company, and implementation will commence in the first Quarter of 2014. The company is currently concluding on a variety of strategic options, for a 2014 Capex requirement of₦4billion that will be imminently announced.
Union Dicon Salt Plc (NSE: UNIONDICON) operates in the Nigerian Consumer Goods Section, and was established in 1984. Union Dicon Salt Plc was until a few years ago, the largest producer of salt in Nigeria. It has two factories, one in Lagos and the other in Port Harcourt with a total installed production capacity of 700,000 Metric tons per year. Apart from the production of the finest quality iodized salt edible salt, and the processing of crude salt for wholesale, Union Dicon Salt Plc also manufactured industrial salt for detergent manufacture, animal feeds, leather tanning, and for oil wells, and other drilling related operations
CBO Capital is a leading Investment, and Project development firm based in Lagos, Nigeria. It was established with the aim of servicing and supporting business growth in Africa. It’s Asset Management subsidiary, CBO Investment Management (CBO IM) is currently raising a $250m Private Equity Fund, for investment across the West African region.
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