The announcement was made this week at the Nigerian Stock Exchange and the execution of the improvement will begin in the first quarter of 2014.
“We’ve taken about 15 per cent of the company, its largely optimistic because we see a lot of value across the entire commodity spectrum in Nigeria and this was an available opportunity in a company that has a listing already,” Chuka Mordi, Partner at CBO Capital Partners told CNBC Africa.
The leading investment and development firm that was established to service and support business growth in Africa, acquired 41 million ordinary shares of Union Dicon Salt Plc.
“The salt industry is worth over four billion dollars in Nigeria, it spans across household uses, industry uses and the oil and gas sector and we thought there was space for another significant player to take advantage of this sector especially in Nigeria,” he said.
According to Mordi, they are currently engaging executives for a new management team and they’ve been speaking to a number of acquisition targets across the sub region which he thinks is very promising.
“We’ve engaged with managements, obviously we completed these discussions prior to the announcement so we have gone down for the road in terms of integrating with the current management,” he explained.
Specifically, the CBO partners plan on rectifying the management problems Union Dicon Salt Plc had in the past and bringing some equity buffer into the company before they begin borrowing money.
“Union Dicon still has a reputation and I think selling salt is good business especially across the entire economy.”
CBO partners will be investing billions of Naira into Union Dicon over the next 24 months however whether or not the company is going to expand across the country’s boarder is part of the information that will be released at the annual general meeting in October.
“I can disclose that we do have significant plans across the sub-region, yes and we are looking to diversify in a variety of ways,” he added.