Dangote shares fall as merger rejection and currency issues arise.
Foreign exchange losses and the Securities and Exchange Commission’s decision to deny the merger proposal of the Dangote Group, which comprises Dangote Sugar Refinery and NASCON Allied Industries, have been blamed for the recent decline in the stock prices of the company.
The persistent pressures on inflation and volatility in the foreign exchange market, according to analysts, have made these problems worse. The cost of importing raw materials has gone up due to the naira’s devaluation, further compressing profit margins.
Dangote Sugar Refinery’s shares fell 18.67% between May and August 2024, from N45.00 to N36.60, as a result of supply chain problems and unstable sugar prices that negatively impacted the company’s financial performance.
The stock price of NASCON Allied Industries declined over that time, going from N37.00 to N32.45, a 12.57 percent decrease. Nonetheless, Dangote Cement’s share price increased by 41% between May and August 2024, starting at N419 in May and reaching N591 in early August.
A statement dated April that was issued by NASCON’s corporate secretary, Adedayo Samuel, announced the suspension of the proposed merger between Dangote Sugar Refinery Plc and Dangote Rice Limited.
Dangote Sugar Refinery’s shares fell 18.67% between May and August 2024, from N45.00 to N36.60, as a result of supply chain problems and unstable sugar prices that negatively impacted the company’s financial performance. The stock price of NASCON Allied Industries declined over that time, going from N37.00 to N32.45, a 12.57 percent decrease. Nonetheless, Dangote Cement’s share price increased by 41% between May and August 2024, starting at N419 in May and reaching N591 in early August.
A statement dated April that was issued by NASCON’s corporate secretary, Adedayo Samuel, announced the suspension of the proposed merger between Dangote Sugar Refinery Plc and Dangote Rice Limited.
The Securities and Exchange Commission’s remarks and suggestion, which focused on Dangote Rice Limited’s present non-operational position, was what caused the suspension. NASCON would like to thank all of its partners and assure the public of any updates as they become available.