Nigerian Billionaire Danjuma, Etuh Acquire Notore Chemical for $150 Million
- Nigerian billionaire Theophilus Danjuma, and Thomas Etuh have acquired Notore Chemical Industries Plc
- The duo acquired the company, which produces fertiliser raw materials, for $150 million
- Etuh described the acquisition as epoch-making, saying that funds would be used to revamp the plant for export
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Tak Agro founder Thomas Etuh has purchased Notore Chemical Industries Plc in Onne, Rivers State, for N1.3 billion in collaboration with Theophilus Danjuma's TY Holdings.
Reports say Tak Agro is a critical player in Nigeria’s fertiliser industry.
Source: Facebook
The deal will revive Nigeria’s fertiliser industry
The deal is expected to positively impact Nigeria’s fertiliser industry, providing the needed capital to renew the firm’s process pant and return profits to shareholders.
Notore Chemical Industries recorded a group loss of N34.6 billion in the first quarter of 2024, from N7.9 billion declared in 2023.
The company’s revenue dropped by 94.5% in Q1 20024 to N224.9 million from N4.1 million in the same period in 2023.
According to a report, Etuh disclosed that the company put $150 million into an escrow account, stating that as a publicly traded company, the buyers went through a bid process and won.
Etuh expressed excitement for the acquisition of Notore, a primary source of raw material, saying its products are exportable and that it has its power plant and a jetty from where it can export from the first day, describing the potential in Notore as huge
The Notore deal was a special placement by a privately-held company, Kwararafa Africa Limited, a special purpose vehicle for 60% of the company's management control.
Notore undergoes management changes
The chemical firm has undergone significant management changes, as shown by the resignations of seven non-executive directors and the group's deputy managing director.
In June 2024, Etuh assumed the position of board chairman of Notore Chemicals.
Danjuma Abdul-Kadir Etuh was appointed deputy managing director alongside six new non-executive directors.
Notore sets a new date to commence operation
Findings show that the plant will commence operation next year. It will source gas to power the turbines, producing 30 to 40 watts of electricity, which will be sold to the local electricity distribution firm.
The plant will invest in a second train and increase its capacity to two million tonnes yearly.
The company produces urea, NPK, and ammonia and owns a urea-making plant in Onne, Rivers State. Its annual design production capacity is about 500,000 metric tons per annum (MTPA) of urea and 330,000 MTPA of ammonia.
Danjuma launches new Project to help Nigerians find jobs
Legit.ng earlier reported that Theophilus Yakubu Danjuma, a Nigerian millionaire and the Victims Support Fund (VSF) chairman, had established a skill-acquisition facility in Yobe State.
Danjuma is a prominent investor on the Nigerian Exchange and one of the wealthiest people in the country. The facility was one of nine being constructed in the local government areas of Gujba, Gulani, and Fika.
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Source: Legit.ng
