Reporters have learned that Thomas Etuh, founder of Tak Agro in partnership with Theophilus Danjuma’s TY Holdings, has acquired Notore Chemical Industries Plc, Onne, Rivers State, for $150 million.
Tak Agro is a major player in the Nigerian fertilizer industry. The transaction is expected to positively impact the country’s fertilizer industry by providing much-needed capital to modernize Notore’s entire complex process facility while delivering returns to shareholders.
Notore Chemical Industries recorded a consolidated loss of N34.6 billion in the first quarter (Q1) of 2024, compared to a loss after tax of N7.9 billion in the same period of 2023.
“We put $150 million into an escrow account. Being a publicly quoted company, we were made to go through a bid process and won the bid,” Etuh said in an exclusive interview with Journalists.
“I am excited about Notore, which is a major source of raw material. Secondly, Notore’s product is exportable and, thirdly, we have our power plant and also a jetty from where we can export from day one. In addition, the place is a free trade zone,” Etuh said. Remittances and reserve growth will not help the naira. The potential we see in Notore is huge,” he added.
The transaction was structured as a special arrangement in which Kwarafa Africa Limited, a private special purpose vehicle, invested 60 percent and management control in the company.
Since the acquisition, Notre Chemical Industries has made significant changes to its management team, reflected in the resignation of seven non-executive directors and the group’s deputy managing director effective May 31, 2024.
In June, Etuh was appointed Notre’s new CEO. Danjuma Etuh was appointed deputy managing director and the board has six new non-executive directors.
Journalists also learned that the plant is expected to start production next year, with gas currently being procured to run turbines that will generate 30-40 watts of electricity, some of which will be sold to the local electricity distribution company.
Once the plant is operational, investments will be made in a second plant within three to four years, increasing production capacity to 2 million tonnes per annum.
Notre produces urea, NPK, and ammonia, and has a urea production plant in Onne, Rivers State, with a current planned annual capacity of about 500,000 MTPA of urea and about 330,000 MTPA of ammonia. A 2,000 MTD NPK blending plant is also in place.
