When Dangote Sugar Refinery proposed a daring merger in August 2023 with NASCON Allied Industries and the dormant Dangote Rice, it seemed like a conglomerate tightening its belt, mixing its salt, sugar, and rice companies right into a leaner empire.
Underneath the proposed phrases, NASCON shareholders would quit 12 NASCON shares in trade for 11 shares of Dangote Sugar.
The plan seemed good till April 2024, when it all of the sudden fell aside.
The Securities and Trade Fee (SEC) raised considerations. Dangote Rice was not operational, so merging it with functioning corporations didn’t fairly add up. The deal was formally suspended.
Since then, with the discharge of the 2024 full-year and Q1 2025 outcomes, traders are left questioning: Did shareholders miss out on an enormous alternative, or did they dodge a loss?
Nascon Allied Industries Plc
By the top of 2024, NASCON’s share worth had fallen by 41.6%, closing the yr at N31.35.
However fast-forward to Might 2025, and the inventory has staged a significant comeback up a whopping 72% year-to-date, now buying and selling at N54.
The corporate didn’t simply bounce again out there, it backed it up with actual efficiency:
Dangote Sugar confronted some robust challenges in 2024. By the top of the yr, its share worth had declined by 42.98%, closing at N32.50.
However in 2025, the corporate confirmed indicators of restoration, with a 16.9% year-to-date achieve, bringing the inventory to round N38.
Financially:
Whereas Dangote Sugar nonetheless faces challenges like excessive borrowing prices and thinner margins, its Q1 2025 efficiency suggests it’s making progress towards stabilization.
Had the merger gone by means of, NASCON shareholders would have exchanged a recovering, dividend-paying inventory for shares in an organization that’s nonetheless in turnaround mode.
The 12-for-11 share swap might have diluted NASCON’s robust momentum and tied it to a enterprise nonetheless navigating headwinds.
As a substitute:
In the meantime, Dangote Sugar is regularly regaining its footing, exhibiting enchancment however nonetheless working to return to its previous energy.
Typically, one of the best offers are those that watch for the appropriate timing.
For now, NASCON shareholders benefited from staying the course, whereas Dangote Sugar continues its path to restoration.
