BUA Foods will be a combination of its five food businesses comprising pasta, edible oil, sugar, rice and flour units.
BUA Group looks to list a consolidated entity to be known as BUA Foods – a combination of its five food businesses comprising pasta, edible oil, sugar, rice and flour – on the Nigerian Exchange Limited in Lagos.
The move will help resolve food crisis in Africa’s most populous nation, Abdul Samad Rabiu, chair of the BUA Group told CNBC Africa on Thursday.
“A lot of people do not know the size of this business. That is why we decided to actually merge all the food businesses. Now that we have done that, people will understand and appreciate the business,” Nigeria’s third-richest man said.
“It’s a huge business and it has a lot of impact, especially the plantation that we have in Kwara State. Because that is a 20,000-hectare project.”
The group expects to begin production of around 200,000 tons of white fortified premium quality sugar in the year ahead.
BUA’s Lagos and Port Harcourt sugar refineries have a combined production capacity of over 1.5 million tons per annum, with the Port-Harcourt plant being an export-based refinery, the West African region being its target market.
Mr Rabiu said an expansion project in flour milling and pasta will be delivered in Port Harcourt by mid-2022.
Currently at 576,000 tons of flour milling and 250,000 tons of pasta, the group’s combined capacity for both products is anticipated to be upped to 1.4 million tons come next June.
Last January, the group’s cement subsidiary debuted on the stock exchange in Lagos after an amalgamation of Cement Company of Northern Nigeria and Obu Cement, making the surviving entity BUA Cement Nigeria’s fourth-biggest company by market value.
Mr Rabiu, Africa’s sixth-richest person according to Forbes’ estimate, holds a 98.5 per cent stake in the cement-maker and could rise further on Africa’s billionaire’s ranking once the proposed listing is completed.
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