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Dangote to Divest 80% of Food Biz, Plans 2,000MW IPP and Build $1.5 Billion Port

By on April 2, 2012

Dangote Group has revealed that it is planning to sell up to 80% stakes in its Food segment businesses which include Dangote Flour, Dangote Sugar, and Nascon (Dangote Salt).

Alhaji Aliko Dangote revealed the company’s strategy during a telephone interview with the Financial Times of London.

This divestment out of the Food segment will allow the company to focus on its core strength, which  is Infrastructure. The company plans to dabble into Petrochemicals, Mining and Power Generation.

According to the Forbes Billionaire, the Dangote Group will now specialize in mining (Coal, Iron and Bitumen) Petrochemicals (methanol, polyethylene and fertilizer) and Infrasructure (2,000 Mega Watts Electricity Generation and a $1.5 billion Deep Sea Port).

The revelations have left many Nigerian analysts guessing on what the motives behind the shrewd billionaire’s moves could be. However it becomes apparent that Dangote is surrounded by some of the most innovative business advisers in the business world.

In the early millennium, about a decade ago, Dangote’s advisers advised him to divest from trading commodities and embark upon their manufacture. Dangote did, and it catapulted him from being one of the richest men in Nigeria, to emerging one of the most successful businessmen in the world.

Now his advisers have struck again, causing the billionaire to make savvy and radical moves such as listing Dangote Cement on the London Stock Exchange, and in the process relinquishing control of his Chairmanship role (albeit due to stringent corporate governance listing requirements for the LSE).

The London listing will make copious amounts of cash available to the Dangote Group, a company not already in short supply of cash. Cash that will make the investments into the Infrastructure, Mining and Petrochemicals sector possible; also the sales of the Group’s interest in the Food segment will reinforce the company’s cash reserves.

Dangote Cement already has contracts signed to establish factories in eight African countries including Liberia and Congo.

2 Comments

  1. Anonymous

    April 2, 2012 at 10:18 pm

    Interesting, this is a typical example of determination and never been satisfied with one level of life..you would think that he would be okay with where is. I really admire this, we need industries in the country and this is the way to go..

  2. Ttttt

    April 14, 2012 at 10:40 pm

    I must applaud the achievements of the Dangote Group in the domain of business. Hopefully, people like you sir will initiate an Africa-wide industrialization process that will provide jobs to young Africans, who constitute the majority of our population thereby improving their standard of living. 
    Furthermore, your achievements have proven that Africa is a place where business can be done thereby debunking the claims of many people in the Western world that Africa is a place where only poverty and misery are the order of the day.