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The process of repositioning and restructuring Union Dicon Salt has started when the board of Union Dicon Salt Plc announced the appointment of Bex Nwawudu and Chuka Mordi as Co-Managing Directors of the company.
Former Acting MD, Col. Henry Mgbemena, reverts to his former role of Executive Director – Production.
The duo of Nwawudu and Mordi are both directors of CBO Capital, a leading private equity and investment management group based in Lagos, Nigeria. The firm was announced as the new core investor in Union Dicon Salt at the end of 2013 and the recent appointment as Co-managing Directors is part of a new turnaround management strategy to re-position Union Dicon Salt as an Agro-Allied business and make the company more profitable.
“We are committed to ensuring that Union Dicon Salt Plc achieves and surpasses its objectives of operational turn-around, repositioned production, and increased delivery capacity,” said Bex Nwawudu, Co-Managing Director of the company. Speaking further, he said: “A key element of our investment philosophy is that we transform UDS into a world class Agribusiness and food processing company through access to funds, projects and partnerships that yield accelerated, yet sustainable
and consistent growth. Nigeria and indeed West Africa is crying out for increased local food production and sector value-add, Union Dicon is investing in, and operating projects that deliver this within the region, at the right quality and price for the African consumer.”
In the last quarter of 2013, CBO Capital Partners became a significant shareholder in Union Dicon Salt, by acquiring 15 percent of UDS Plc, whilst also being awarded a broad management contract and options to
purchase a controlling stake in the company. The decision to bring in a youthful, but experienced management team that can define, execute and finance the transformational growth plan has been welcomed by the equity market. Union Dicon Salt Plc will be announcing a series of major developments in Q1 2014.
Union Dicon Salt Plc ( (NSE: UNIONDICON) operates in the Nigerian Consumer Goods Section and was established in 1984. Union Dicon Salt Plc was until a few years ago, the largest producer of salt in Nigeria. It has two factories; one in Lagos and another in Port Harcourt with a total installed production capacity of 700, 000 Metric tons per year. Apart from the production of the finest quality iodized edible salt, and the processing of crude salt for wholesale, Union Dicon Salt Plc also manufactured industrial salt for detergent manufacture, animal feeds, leather tanning, oil wells, and other drilling related operations.
CBO Capital is a private equity and investment management firm based in Lagos, Nigeria. The company was formed in 2009 and employs 15 investment professionals. It was established with the aim of servicing and supporting business growth in Africa, and has executed over $175m of financing mandates and exits over the last 3 years. Its Asset Management subsidiary, CBO Investment Management (CBOIM) is currently investing, and fundraising a $250m West Africa SME Private Equity Fund, for investment across the West African region.
