Dangote Sugar Refinery has tightened its grip in the sugar market as it takes over market competitor, Savannah Sugar Company Limited. Dangote sugar received all assets of Savannah Sugar - this includes tax losses and other liabilities. The takeover was made after an extraordinary general meeting was held on Thursday.
The court had ordered the meeting for shareholders of the Dangote Sugar Refinery. The meeting led to a resolution that the company acquire all assets belonging to Savannah Sugar Company. In a statement obtained by AllNews, Dangote Sugar now owns the real property and intellectual property rights of Savannah Sugar as it bet big on the sugar market after Dangote Industries sold its flour subsidiary.
Part of the deal led to the court ordering that shareholders of Savannah Sugar be issued 146,878,241 ordinary shares of N0.50 each in the share capital, for the 162,756,968 ordinary shares held by the Scheme Shareholders in SSCL. This means they will remain as shareholders of Savannah Sugar.
With the conclusion of the deal, the statement reads that Dangote Sugar will receive "all the assets ((including all tax attributes, unutilized capital allowances, tax losses, withholding tax credits and any other tax refunds available subject to the approval of the FIRS), liabilities and business undertakings."
Part of the assets that will now be under Dangote Sugar includes, "real property and intellectual property rights of Savannah Sugar Company Limited (“SSCL”) transferred by SSCL to the Company (pursuant to the Scheme of Arrangement between SSCL and its shareholders) upon the terms and subject to the conditions set out in the Scheme of Arrangement without any further act or deed” the statement said.