CBO Capital takes over Union Dicon Salt

Date:

cbologoUnion Dicon Salt Plc, on Wednesday, announced to the Nigerian Stock Exchange (NSE) that a new core investor, CBO Capital Partners, has been given a management contract to turnaround the company.

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Union Dicon Salt (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 billion, CBO Capital Partners acquired 41,000,000 Ordinary Shares of UDS, and has also acquired an option to purchase a further 240,000,000 ordinary shares for a consideration of N3.36 billion.

“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.

Bex Nwawudu, a founding partner of CBO Capital Partners and new Executive Director designate of Union Dicon Salt, said: “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”.

The turnaround program for the company is being finalised 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 ₦4 billion that will be imminently announced.

Union Dicon Salt Plc produces the finest quality iodized salt, edible salt, and the processing of crude salt for wholesale. The company also manufactured industrial salt for detergent production, animal feeds, leather tanning, and for oil wells, and other drilling related operations

CBO Capital is a leading Investment, and project development firm based in Lagos, Nigeria. It was established with the aim of servicing and supporting business growth in Africa. It’s Asset Management subsidiary, CBO Investment Management, is currently raising a $250 million (N39 billion) Private Equity Fund, for investment across the West African region.

Babatunde Akinsola
Babatunde Akinsolahttps://naija247news.com
Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports

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