NIGERIA – Dufil Prima Foods Plc, Nigeria’s pioneer and largest producer of instant noodles, has merged and absorbed three of its subsidiaries De United Foods Industries Limited (De United), Northern Noodles Limited (NNL) and Pure Flour Mills Limited (PFM).
Merger of the four operations, focusing on noodles, pasta, wheat flour and vegetable cooking oil processing, is aimed at consolidating the company’s efforts in becoming one of the largest FMCG companies in Nigeria.
With Dufil Prima Foods Plc as the surviving and enlarged company, it is set be a stronger and more dependable manufacturing company that has the critical mass, product line diversity, structure and market intelligence to compete in the same market as other big manufacturing companies.
Chief Operating Officer, Dufil Prima Foods Plc, Adesh Jain said, “This is a huge step towards consolidating our status as Africa’s largest pasta and instant noodle manufacturer.
“This is an attractive combination for stakeholders as customers will benefit from our wider and better-integrated array of products and services; employees will enjoy the advantages and opportunities of being a part of a larger, stronger company; and shareholders will have the opportunity to continue to participate in the success of a bigger enterprise.”
According to the company, the merger was achieved by a scheme of arrangement unanimously approved by the shareholders of each company and sanctioned by the Federal High Court and all appropriate regulatory authorities.
The regulatory authorities include but not limited to the Securities and Exchange Commission (SEC), the Corporate Affairs Commission (CAC) and the Federal Board of Inland Revenue (FIRS), among others. Consent of Creditors was also duly obtained.
Meanwhile, FMDQ Securities Exchange Limited recently announced the approval of Dufil’s N8.00 billion Series 5 and N22.00 billion (US$52.9m) Series 6 Commercial Papers (CPs) under its N30.00 billion (US$72.2m) CP Issuance Programme on its platform.
According to a statement by FMDQ Exchange, the quotation of these CPs, which were sponsored by Stanbic IBTC Capital Limited, strategically positioned the consumer goods manufacturer to raise short-term finance easily and quickly from the Nigerian Debt Capital Market (DCM).
The company is no stranger to the debt capital markets having issued an aggregate amount of N37 billion (US$89m) in CPs between 2016 and 2020 and N30 billion (US$72m) under its Series 3 & 4 in 2021.
Following the merger, the company still has two more independent subsidiaries in Nigeria i.e., Insignia Print Technology LFTZ Enterprise and Raffles Oil LFTZ Enterprise, alongside its Ghanaian operations.