Dangote Sugar Seek Shareholders’ Approval For N500bn Rights Issue

Dangote Sugar Refinery Plc has announced plans to raise up to N500 billion through a rights issue, subject to regulatory approval.

The proceeds will be used to strengthen the company’s capital base and drive growth.

The proposal will be presented at the company’s 20th Annual General Meeting, where shareholders will also be asked to approve the remuneration of non-executive directors and a set of resolutions that would enable the board to proceed with the capital raising, subject to regulatory approvals.

Under the proposal, the board of Dangote Sugar would be authorised to issue ordinary shares to existing shareholders through a rights issue on terms and at a time it considers appropriate.

The company said the fundraising would be subject to the approval of relevant regulatory authorities, while the offer itself could also be underwritten on terms to be determined by the directors.

It added that “the planned transaction would rank among the largest capital-raising exercises in Nigeria’s consumer goods sector in recent years and signals the company’s intention to shore up funding as it navigates expansion requirements and broader market pressures.

“As part of the arrangement, any shares not taken up by existing shareholders within the stipulated offer period may be made available to other shareholders who indicate interest in acquiring additional stock, in line with regulatory requirements and terms to be set by the directors.”

Dangote Sugar said it is also seeking shareholder approval to increase its share capital by the exact number of shares required to accommodate the new ordinary shares to be issued under the rights offer.

According to the Notice of the 20th Annual General Meeting, the board would, upon determining the final terms of the issue, be empowered to pass the necessary resolutions to enlarge the company’s capital, allot the new shares, address fractional holdings in line with applicable laws and cancel any shares left unallotted after the completion of the exercise.

“In addition, the company is asking shareholders to authorise the directors to apply outstanding amounts advanced to the business by existing shareholders, whether classified as shareholder loans or under other funding arrangements, as payment for shares that may be subscribed for under the rights issue.”

Dangote Sugar in its 2025 audited results showed a significant operational recovery, with full year 2025 revenue increasing by 24.56 per cent to N829.21 billion and a 658.64 per cent increase in operating profit to N96.13 billion.

The company significantly reduced its net loss to N64.12 billion from N192.6 billion in 2024, aided by foreign exchange gains and strong 50kg bag sales (N807 billion).