Dangote Sugar Refinery, an integrated sugar business majority owned by Nigerian billionaire Aliko Dangote, has experienced a remarkable upswing in its share price, catapulting its market capitalization beyond the $1-billion mark and cementing its status as a billion-dollar empire.
This surge comes in the wake of the company’s game-changing merger, poised to reshape the landscape of the Nigerian food industry.
As of the time of reporting, Dangote Sugar’s shares on the Nigerian Exchange (NGX) were valued at N70 ($0.0923) per share, resulting in a market capitalization of N850.3 billion ($1.12 billion). This solidifies its position as the eleventh most valuable company on the NGX.
This unprecedented growth in Dangote Sugar’s share price, marking a staggering 134-percent increase since July 13, when it was trading at N29.85 ($0.0394), can be attributed to the company’s announcement of its merger plans with Nascon Allied Industries Plc and Dangote Rice Limited, both operating under the umbrella of the Dangote Group.
This strategic move signifies a pivotal shift in Nigeria’s food and consumer goods industry.
The surge in the company’s share price has not only delivered substantial gains to its shareholders but also significantly enhanced the wealth of Dangote, who retains a substantial 72.7-percent stake in the integrated sugar business.
In just 54 days, Dangote Sugar’s market capitalization had soared by an astounding N487.7 billion ($643 million), ascending from N362.58 billion ($478.05 million) on July 13 when the merger was unveiled to its current standing at N850.28 billion ($1.12 billion).
This remarkable milestone has further solidified Dangote’s status as the richest man on the African continent. His stake in the sugar business, now valued at N618.15 billion ($815.3 million), has substantially contributed to his already substantial fortune, as reported by the Bloomberg Billionaires Index, which places his total wealth at $17.8 billion.
Dangote Sugar Refinery’s success in crossing the $1-billion market capitalization threshold underscores the significant impact of its merger strategy and signals a promising future for the Nigerian food industry under the leadership of Dangote.
The company’s shareholders and stakeholders await with anticipation the continued growth and development this transformative merger will bring to Nigeria’s consumer goods landscape.
The merger aims to create a formidable food conglomerate boasting a diverse product portfolio, including sugar, rice, salt, vegetable oil, tomato paste, seasoning, and savory products.