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Dangote Foods To Hit N1.50 Trillion Market Capitalisation After Listing





The merger of Dangote Sugar forming alliance with NASCON Allied Industries Plc, (NASCON) and Dangote Rice Limited (DRL), to form a single entity known as Dangote Foods is projected to become a consumer goods giant across the continent with a market capitalisation of N1.50 trillion.

This will make it the second most valuable consumer goods firm in Africa’s most populous nation, according to a calculation based on information made available in a recent report by Cordros Securities Limited.

BrandNewsDay reports that following deliberations by their respective boards as of July 31, 2023, Dangote Sugar Refinery Plc (DANGSUGAR), NASCON Allied Industries Plc (NASCON) and Dangote Rice Limited (DRL) announced the proposed merger of the entities to form one enlarged company.


According to the report, analysis of the combined entity post-merger points to an eventual listing price of N87, which translates to 126.10 percent and 24.63 percent on their last Dangote Sugar’s target price of (N38.26/share) and the current market price of (N70/share).

As estimated by MoneyCentral, the combined entity would have an issued share capital of 17.35 billion shares.

It is noteworthy that at a market cap of N1.50 trillion, the combined firm will be joining the trillion Naira club of companies that includes: Dangote Cement, BUA Cement, BUA Foods, MTN Nigeria, Seplat Energy, Zenith Bank, Guaranty Trust Holding Company.


In a press release signed by Company Secretary Temitope Hassan, the company detailed the conditions under which the merger would be completed as follows:

Eleven (11) ordinary shares of 50 Kobo each in Dangote Sugar Refinery (DSR), credited as fully paid-up shares, will be issued for every twelve (12) NASCON shares of 50 Kobo each. This equates to 2,428,651,847 new ordinary shares of DSR.

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Fourteen (14) ordinary shares of 50 Kobo each in Dangote Sugar Refinery, credited as fully paid-up shares, will be issued for every one (1) ordinary share of N1.00 Kobo each in Dangote Rice Limited (DRL). This results in 2,775,792,508 new ordinary shares of DSR.


The combined entity will benefit from cost savings in the area of raw materials, technology, and a talented workforce. However, there remains the challenge of an unstable macroeconomic environment as the country is beset by rising inflation, foreign exchange scarcity, and decrepit infrastructure.

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