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Wednesday, May 15, 2013

Dangote Sugar Plans Further Acquisition To Boost Investment

The management of Dangote Sugar Refinery Plc has disclosed that it will be involved in various acquisitions in the next few years to boost its investment.
This, according to the company, is part of efforts aimed at ensuring the success of its backward integration project.

The Chairman, Dangote Sugar, Alhaji Aliko Dangote, was quoted as saying this at the company’s seventh Annual General Meeting in Lagos on Monday.
“Our target is to achieve local production of 1.5 million metric tonnes of raw sugar per annum in the next five years, and in addition to Savannah, other sites will be acquired, and the necessary steps will be taken to ensure that our foray in the backward integration project becomes a good part of our success story,” he said.
Dangote explained that the company had to pull out from its investment in Algeria as a result of harsh policies by the government of the country.
“You will recall that we had planned to expand our operation with 1.1 million metric tonnes of sugar refining capacity in Algeria. Unfortunately, the Algerian government came up with unfavourable policies that will impede the achievement of the goals with which the investment was targeted,” he stated.
The Managing Director, Dangote Sugar, Mr. Abdullahi Sule, said the company intended to focus on growing new markets for higher volumes, a more improved bottom line, increased market share and value creation for all stakeholders.
“Our focus is to grow our market within Nigeria and Africa with high quality products, and we will continue to build on our existing competencies to enable us set the needed platform for market expansion,” he said.
Shareholders at the meeting commended the company on the N6bn declared as dividend, translating into a payout of 50 kobo per share.
The National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs. Bisi Bakare, said the company increased the dividend payout by 25 per cent, when compared to the N3.6bn paid last year, despite the fact that the refinery was gutted by fire last year.
“This year’s performance is unique because this is a company that 60 per cent of its refinery got burnt, some companies would have taken it as an excuse not to pay anything, but it is paying 50 kobo, up from 30 kobo paid last year.”
The National Co-ordinator, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, said “The company has done what the government could not do in terms of job creation. If the government can tackle security issues, companies will perform better”.
He, however, urged Dangote Sugar to increase its distribution network, noting that this would improve accessibility of its products and enhance its earnings and profitability



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