ucheson2:
In summary, DSR will acquire NASCON & DRL, then change its name to DANGOTE FOODS.

More like it and then issue a total of about 5.2 billion shares to NASCON and Dangote Rice shareholders

emmanuelewumi:




You will have the 100,000 units of Dangote Sugar. Dangote Sugar is the SI unit for the share exchange ratio.

It is NASCON that will have about 93,000 share for their 100,000.


Dangote Sugar has 12.15 billion shares whereas the enlarged company ie Dangote Foods will have about 17.5 billion shares.


Get a professional to explain the details of the nerger document to you

Alright, boss. I was looking at it in terms of ratios. Listing it at 100 naira, as speculated here, will not be feasible from where I see it. It would be tantamount to creating money from thin air. 60 or 70 naira would be more reasonable, even lower.

In another perspective on the merger document
The statement "new ordinary shares of DSR" in both cases,
emphasis on "new"

This signifies DSR has swallowed the shares of the others and now the King Cobra 100%.

phoinix:


Alright, boss. I was looking at it in terms of ratios. Listing it at 100 naira, as speculated here, will not be feasible from where I see it. It would be tantamount to creating money from thin air. 60 or 70 naira would be more reasonable, even lower.

We still have weeks before the technical suspension will take place, the professional advisers are topnotch. Anything can happen within 4 weeks. I bought few weeks ago for N23 and now closed at N58.


Never say never

Where's the dinner table please? Rice, salt and sugar everywhere.

chimex38:

Hmmm..
tend to agree with you somewhat.

since they officially called it a merger..

Integration of others will naturally dillute ones controlling share

Otherwise its outright buyout.
DSR buying out two other companies..

I was looking at it in terms of ratios and integration. That would make sense to then list it with a higher price to compensate for dilution. If it is a buyout, as you mentioned, it will probably be priced near what Dangsugar is trading currently or at the time of suspension.

phoinix:


Alright, boss. I was looking at it in terms of ratios. Listing it at 100 naira, as speculated here, will not be feasible from where I see it. It would be tantamount to creating money from thin air. 60 or 70 naira would be more reasonable, even lower.

More like it. They would list the additional circa 5billion DSR shares issued for Nascon and DRL at the price DSR share was placed on technical suspension. 100 could only be projected price due to the expected rally. Unless there's a share reconstruction of DSR.

A change of name from DSR to DF should not warrant an arbitrary listing price.

emmanuelewumi:



We still have weeks before the technical suspension will take place, the professional advisers are topnotch. Anything can happen within 4 weeks. I bought few weeks ago for N23 and now closed at N58.


Never say never

The professional advisers just received the detailed terms today from the same memo that we have been analyzing. If they had the current information earlier, it would be insider trading. LOL. Anyway, you are right, anything is possible.

Frangel:


More like it. They would list the additional circa 5billion DSR shares issued for Nascon and DRL at the price DSR share was placed on technical suspension. 100 could only be projected price due to the expected rally. Unless there's a share reconstruction of DSR.

A change of name from DSR to DF should not warrant an arbitrary listing price.

I came to the same conclusion as you. See the post above yours. LOL. Thank you.

phoinix:


The professional advisers just received the detailed terms today from the same memo that we have been analyzing. If they had the current information earlier, it would be insider trading. LOL. Anyway, you are right, anything is possible.

This is how it works, Dangote Sugar might get to N90 in the next 8 weeks, and then placed on technical suspension for 2weeks for the merger to be concluded. Then the new shares will be listed for trading.


The professional advisers will not want the gap between BUA Foods and Dangote Foods to be too wide


Since BUA Foods is now at N180 with a possibility to get to N200, listing Dangote Foods shares at N100 is not an impossibility

emmanuelewumi:


This is how it works, Dangote Sugar might get to N90 in the next 8 weeks, and then placed on technical suspension for 2weeks for the merger to be concluded. Then the new shares will be listed for trading.


The professional advisers will not want the gap between BUA Foods and Dangote Foods to be too wide


Since BUA Foods is now at N180 with a possibility to get to N200, listing Dangote Foods shares at N100 is not an impossibility

Alright boss.

In all these know when to book profit because I am yet to understand the current price of N180 for BUA Foods.


Ideally the intrinsic value of Dangote Foods should not exceed N90

Frangel:


More like it. They would list the additional circa 5billion DSR shares issued for Nascon and DRL at the price DSR share was placed on technical suspension. 100 could only be projected price due to the expected rally. Unless there's a share reconstruction of DSR.

A change of name from DSR to DF should not warrant an arbitrary listing price.

The 100 will be possible because it is a new entity being listed. The other three entity I believe will be delisted. It won't be in the form of ordinary name change..

Nobody is saying anything about gsk.I just saw 13.90 as today closing. Oga customstreet how far.Abeg any update from that side

Streetinvestor2:
The 100 will be possible because it is a new entity being listed. The other three entity I believe will be delisted. It won't be in the form of ordinary name change..

If they delist the other three and list DFoods at N100, it's possible. If they are only listing the additional 5billion shares of DSR, the reference price is price of DSR at the time. Details would unfold.

DSR/DF could well get above N100. BUA was listed at N40 less than 2 years ago and it's N180 now.

I was looking at it today, I thought when a company says it wants to leave Nigeria, people will be running out of the stock, instead, they are now rushing it. That thing stayed below 6 naira for years.

Streetinvestor2:
Nobody is saying anything about gsk.I just saw 13.90 as today closing. Oga customstreet how far.Abeg any update from that side

ojesymsym:
I was looking at it today, I thought when a company says it wants to leave Nigeria, people will be running out of the stock, instead, they are now rushing it. That thing stayed below 6 naira for years.

Pay off speculations

Streetinvestor2:
Nobody is saying anything about gsk.I just saw 13.90 as today closing. Oga customstreet how far.Abeg any update from that side

I have no hot tips on GSK.
It's tricky with GSK. Book value per share is about N8. I think they can realize good profits from their assets. Or get good premium if the business is sold through a Mgt Buy Out or to another entity, just like they did with the ribena/lucozade line. Could Fidson buy it, since they're already manufacturing for GSK? Can they realize substantial enough to settle creditors, pay handsome compensation to staff and be able to distribute to shareholders significantly above current price?

Today, I sold off the tashere units I had left. I felt safer doing so.

The price rally could be by potential investors taking position and interested in taking over the business. If so, how far can they go?

as copied from nairametrics

The Dangote Group recently announced that a merger between its subsidiaries—Dangote Sugar, NASCON, and Dangote Rice—will proceed via a scheme of consideration.

In a press release signed by Company Secretary Mrs. 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.

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.

What this means for shareholders
To determine what this means, we will have to rely on a simple mathematical formula used by investors to make calculations.

Example

DSR Shares (11) = A

NASCON (12) = B

What you own (example 100) = C

The formula is C/B multiplied by A.

Nascon Shareholders:
They will be getting 11 ordinary shares of Dangote Sugar Refinery for every 12 they have in NASCON. Let us illustrate with an example.

If you have 100 shares of NASCON, you will be getting approximately 92 shares in Dangote Sugar Refinery and will now be a shareholder of the latter.
If you have 200, shares in NASCON you will be getting approximately 183 shares in DSR. And if it was a random number like 443, you would be getting 406 units in DSR.
NASCON will cease to exist as a company, as all its shareholders will become DSR shareholders.

Dangote Rice Limited (DRL)Shareholders:
They will be getting 14 ordinary shares in DSR for every 1 they own in DRL. Let us illustrate with an example.

If you have 100 shares of DRL, you will be getting approximately 1,400 shares in Dangote Sugar Refinery (DSR) making you a shareholder of DSR.
If you have 250, shares in DRL you will be getting approximately 3,500 shares in DSR. With a random number like 670, you would be getting 9,380 units in DSR.
DRL will cease to exist as a company, as all its shareholders will become DSR shareholders.

Dangote Sugar Refinery:
According to the press release, the shareholders of the company will be diluted by 2,428,651,847 new ordinary shares for NASCON and 2,775,792,508 new ordinary shares of DRL, totaling 5,204,444,355 shares of Dangote Sugar Refinery Shares.

This will increase Dangote Sugar Refinery’s current 12,146,878,241 outstanding shares by 5,204,444,355 shares, or 42.8%. Despite this dilution, the market value of the company is expected to increase.

https://nairametrics.com/2023/08/30/explaining-what-dangote-sugar-dangote-rice-and-nascon-merger-means-for-all-shareholders/

emmanuelewumi:




You will have the 100,000 units of Dangote Sugar. Dangote Sugar is the SI unit for the share exchange ratio.

It is NASCON that will have about 93,000 share for their 100,000.


Dangote Sugar has 12.15 billion shares whereas the enlarged company ie Dangote Foods will have about 17.5 billion shares.


Get a professional to explain the details of the nerger document to you

I guess what he is trying to saying is, if Dangote Food is listed at #100, 70% (#70) of that price is determined by Dangote sugar while the remain 30% represents the value determined by NASCON and DRL.

Nonetheless, due the merger, the value of old DSL has increased and holders of DSL shares will sell their units based on the new price

"It takes a great deal of boldness and a great deal of caution to make a great fortune; and when you have got it, it requires ten times as much wit to keep it" - Nathan Mayer Rothschild (1777 – 1836)

Thank you all for the analysis.
Just like Tbag did in @prisonbreak fight, we've been told by the bosses whose pocket we should bet on. Sugar with no diabetes.

emmanuelewumi:




If they list at N100, how will Dangote Sugar be N70.


Dangote Sugar is the new Dangote Foods. It is Dangote Sugar that metamorphosed to Dangote Foods

My concern is how much Dangfood mkt capitalization would be las las

Can sugar challenge bua in that area? Bua has more than N3trillion

veecovee:

My concern is how much Dangfood capitalization would be las las

Can sugar challenge bua that area?

When BUAFOOD listed in January last year (2022). Their market capitalization started on N720B.

20 months down the line and it's N3.24T

Present capitalization for dangote sugar and NASCON is N856B. By the time you add rice, it should be a little over N1T trillion naira as of now.

Anything God cannot do does not exist.

So, yes BUAFOOD can be challenged by DANGOTEFOOD especially if dangote deployed the BUA strategy of pumping the price while reducing the float to stay at over 40B naira float value requirement. This should favour the die hard holders that will never want to sell until it touches N200

unite4real:


When BUAFOOD listed in January last year (2022). Their market capitalization started on N720B.

20 months down the line and it's N3.24T

Present capitalization for dangote sugar and NASCON is N856B. Bt the time you add rice, it should be a lover N1T trillion naira as of now.

Anything God cannot do does not exist.

So, yes BUAFOOD can be challenged by DANGOTEFOOD especially if dangote deployed the BUA strategy of pumping the price while reducing the float to stay at over 40B naira float value requirement. This should favour the die hard holders that will never want to sell until it touches N200

You sabi this game well well....

l missed BUA at the N40 listing price due to my analysis paralysis. Such mistake will never happen to me again moving from Dangote Sugar into Dangote Foods...

Generational wealth is about to be made...no mistakes again

ALHAJI DANGOTE has been making shareholders smile since 1745

veecovee:

My concern is how much Dangfood mkt capitalization would be las las

Can sugar challenge bua in that area? Bua has more than N3trillion

That is where the game will now become very interesting. Patient investors will be hugely rewarded .

Where two billionaires battle for highest capitalisation, the shareholders smile to the bank

One should not also be too greedy , it makes sense to set a realistic target. Booking profit is very very important

FOLLOW THE MONEY

DANGSUGAR
Confusion in market over doc interpretation......
As some are dumping, some are buying.......
Think the Koko now is the re-listing price......
In my opinion, Sugar is the main deal to buy .......followed by Salt....

Those able to pick @52.50 low today, should be lucky.......I think......this is just my opinion.....not any form of advice.

From low of 52.50......to 55.......to 56 now.....

* SUGAR: 1:1
* SALT: 12:11 (Sugar)
* RICE: 1:14 (Sugar)

** They should do quick to announce the re-listing price**

Alhaji in as much as you are sharing the money you are equally sharing corruption.I have searched to see financials of dangote rice or it share holding structure but nothing.It is just obvious you just cornered 2.7 b of dangota sugar in the name of rice which you own completely.Are you telling us that dangota rice has 14 times book value of sugar or 14 times intrisic value of sugar.Are you saying rice made 14 times profit of salt even when salt is not at per with sugar in the valuation...haba malam

I hope you don't come and play the game with tomatoes in the future.How much income or profit after tax is rice bringing to dangota food.we wait to see.

On a serious not rabiu will be a learner to alhaji when dangota food is listed.Alhaji just showed us one hand

End of the month

Profit takers everywhere.

If you bought at 13.32 and it is now selling at 54, what more do you want?

Let other people enjoy too!

Streetinvestor2:
Alhaji in as much as you are sharing the money you are equally sharing corruption.I have searched to see financials of dangote rice or it share holding structure but nothing.It is just obvious you just cornered 2.7 b of dangota sugar in the name of rice which you own completely.Are you telling us that dangota rice has 14 times book value of sugar or 14 times intrisic value of sugar.Are you saying rice made 14 times profit of salt even when salt is not at per with sugar in the valuation...haba malam

I hope you don't come and play the game with tomatoes in the future.How much income or profit after tax is rice bringing to dangota food.we wait to see.

On a serious not rabiu will be a learner to alhaji when dangota food is listed.Alhaji just showed us one hand

Yes, the book value of Dangote Rice will be more than 10 times higher than that of Dangote Sugar.


Book value is determined by the shareholders fund and the outstanding shares


Based on last year's report, the shareholders fund of Dangote Sugar is N171 billion and total shares is 12.15 billion. The book value per share will N14.1

Assuming Dangote Rice has the same shareholders fund with NASCON which was N19 billion and 100 million outstanding shares the book value per share for Dangote Rice will be N190.

emmanuelewumi:



Yes, the book value of Dangote Rice will be more than 10 times higher than that of Dangote Sugar.


Book value is determined by the shareholders fund and the outstanding shares


Based on last year's report, the shareholders fund of Dangote Sugar is N171 billion and total shares is 12.15 billion. The book value per share will N14.1

Assuming Dangote Rice has the same shareholders fund with NASCON which was N19 billion and 100 million outstanding shares the book value per share for Dangote Rice will be N190.

Why do people think that DangFoods will be adjusted to be closer to BUAFoods, only for the sake of bridging gaps? Last year, BUAFoods made 91.3B naira PAT, while sugar (54.7B) and salt (5.5B) combined for 60.2B, with rice maybe 67B. In my opinion, BUAFoods will be the market leader with better ROE and higher equity.