By Abdul Rahman Bangura–
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- In an overture to strengthen production breadth and further boost its market share, shareholders of Dangote Sugar Refinery Plc (DSR) have approved for the formal allowance of Savannah Sugar Company Limited.
Shareholders of DSR during their Extraordinary General Meeting, which was gone in advance by the 2019 Annual General Meeting, elected in favor of the consolidation of the two companies as sub-Saharan Africa’s largest sugar sifting firm, undertook on the next stage of its backward integration plan to revolutionize the sugar sub-sector of the nation’s economy.
The Chairman of the company – Alhaji Aliko Dangote noted the DSR, a top tier performer in the enterprise with an installed ability to produce 1.44 million metric tones per annum, will be leveraging on the Savannah Sugar’s sugarcane production capacity to increase its production capacity.
According to Dangote, Savannah Sugar has 32,000 hectares of land available for cultivation of sugar cane as well as milling capacity of 50,000 tones of sugar per annum and that upon the merger, further investments would be made to increase SSCL land under cultivation.
Dangote clarified that, the DSR board deemed the merger as fair and adequate and believed that, it would give strategic chances and advantages for the company, employees, and other stakeholders as the new company would be regulating from the position of heightened access to capital and then higher profitability.
He recorded some of the usefulness of the merger as being to centralize the assets, intellectual property rights, operations and business dealings of the SSCL into the DSR; eradicate cost inefficiencies occurring from recurrence of reserves and procedures and enhance the efficiency through more attentive supervision of resources; and place it as the big, and integrated sugar producer in Nigeria.
The Chairman of the Company said that, essential authorizations have been given by all interested regulatory councils and the merger would entirely modify the sugar sectorial landscape as the Federal Government’s backward integration policy would be nicely enforced by the company.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent
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