Union Dicon Salt (UDS) Plc has announced that a new core investor, CBO Capital Partners with a turnaround management contract, has become a significant minority shareholder in the company.
UDS, currently chaired by General T.Y. Danjuma, was established in 1984, and for a considerable period, was the largest producer of salt in Nigeria. It has two factories: one in Lagos and the other in Port Harcourt with a total installed production capacity of 700,000 Metric tons per year.
In a deal valuing the company at N8.40 dillion Naira, CBO Capital Partners acquired 41,000,000 (forty one million) ordinary shares of UDS and also an option to purchase a further 240,000,000 (two hundred and forty million) ordinary shares for a consideration of N3,360,000,000 (three billion three hundred & sixty million naira)
“We are glad to have CBO on board, to rejuvenate this great company, and we shall soon announce a strategy that will involve investment of billions of naira, over the next 24months” said the Managing Director of Union Dicon Salt, Rtd Colonel Henry Mgbemena.
“CBO Capital is very conscious of the exceptional history of Union Dicon Salt and we fully intend to take it to greater heights. This is a part of our investment philosophy of “Dedicated to Developing Nigeria”. We are grateful to the board and management of Union Dicon Salt Plc, for their outstanding professionalism during negotiations, and we are proud to become shareholders of this illustrious company” said the Bex Nwawudu, a founding partner of CBO Capital, and new Executive Director designate of Union Dicon Salt.”
The turnaround program for the company is being finalized with the current management of the company and implementation will commence in the first quarter of 2014. The company is currently concluding on a variety of strategic options, for a 2014 Capex requirement of N4billion that will be imminently announced.