The shareholders of Dangote Sugar Refinery Plc have unanimously given their approval to the board to acquire Savannah Sugar Company.

The shareholders also approved the 30 kobo proposed by the company’s Board of Directors as dividend for the financial year ended December 31, 2011.

Speaking at the company’s Annual General Meeting in Lagos on Thursday, the National Coordinator, Independent Shareholders Association of Nigeria, Mr. Sunny Nwosu, said that the move by the company to acquire SCC was a commendable one.

“The proposed acquisition of SCC by our company is a move that is capable of creating strong synergies between both firms, thus increasing shareholder value,” he stated.

The President, Dangote Group, Alhaji Aliko Dangote, in his address to shareholders described the company as the market leader in the Nigerian sugar industry with about 70 per cent market share and the largest sugar refinery in sub-Sahara Africa with installed sugar refining capacity of 1.44million metric tonnes per annum.

According him, DSR’s raw sugar importation and refining business has, however, experienced declining profitability margin “due to volatile raw sugar prices in the global market and increasing competition in the local market”.

He explained that as part of strategies to retain its market leadership, and dominant position, the company has been working with on a number backward integration strategies into domestic sugar production and milling business.

He said, “The new strategy is in support of the Federal Government transformation agenda and is ahead of the proposed sugar policy with the thrust of encouraging local production of sugar.

“The strategy will significantly reduce the company’s cost structure while ensuring that it remains competitive and delivers improved profitability and enhanced shareholder value.” Dangote also informed shareholders that Savannah Sugar Company Plc, located in Numan, Adamawa State, presented a good investment opportunity, in that there would be massive creation of employment, power generation, animal feeds production, ethanol, among others.

He also explained that SSC is currently 95 per cent owned by Dangote Industries Limited, the core shareholder and was acquired from the Federal Government in 2002 during the privatisation exercise as part of DIL to reduce the company’s dependence on raw sugar.

The Managing Director of the company, Mr. Abdullahi Sule, explained that the clear vision of the company was to grow local and international market.

He added that company had plans to expand its export horizon beyond Ghana to other African countries.

“We are prospecting other countries across the West African Coast. Efforts are in top gear to ensure the refinery expansion projects and the proposed acquisition of Savannah Sugar as part of our backward integration projects are completed this year,” he stated.

Source: Punch/Udeme Ekwere