Tak Agro founder Thomas Etuh, in collaboration with Theophilus Danjuma’s TY Holdings, has paid $150 million for Notore Chemical Industries Plc in Onne, Rivers State, The News Chronicles understands.
One of the major companies in Nigeria’s fertilizer market is Tak Agro.
The agreement is anticipated to boost the nation’s fertilizer sector since it will give Notore the much-needed funds to renovate its entire intricate process facility while giving shareholders a profit.
In the first quarter (Q1) of 2024, Notore Chemical Industries reported a group loss after tax of N34.6 billion, down from a disclosed loss after tax of N7.9 billion in the equivalent period of 2023.
Its revenue for the period fell by 94.5 percent, from N4.1 billion in the equivalent quarter of 2023 to N224.9 million in Q1 of 2024.
“We put $150 million in an escrow account. We were required to go through a bid procedure because we are a publicly traded firm, and we won the auction,” Etuh stated in an exclusive interview.
“I am quite excited about Notore, which is a huge supply of raw material. Secondly, Notore’s product is exportable, and thirdly, we have a power plant and a jetty from which we can begin exporting right away. Furthermore, the location is a free trade zone,” Etuh explained.
“Notore has enormous potential,” he continued.
Kwararafa Africa Limited, a privately held special-purpose organisation, arranged the financing as a special placement in exchange for management and 60 percent of the business.
Significant management changes have occurred at Notore Chemical Industries since the acquisition, as shown by the resignation of the group deputy managing director and seven non-executive directors as of May 31, 2024.
Etuh was named the new board chairman of Notore in June.
Along with the appointment of six new non-executive directors to its board, Danjuma Etuh was named deputy managing director.
According to information obtained by The News Chronicles, the plant is expected to start up in the upcoming year. Gas is presently being procured to fuel the turbines, which will generate 30 to 40 watts of power, with a portion of that energy being marketed to the nearby distribution firm.
After it is operational, a second train will be purchased in three to four years, increasing capacity to two million tonnes annually.
Notore has a urea-producing plant in Onne, Rivers State, that has an annual design production capacity of about 500,000 metric tonnes per year (MTPA) of urea and 330,000 MTPA of ammonia. Notore also produces NPK and ammonia. It also has a 2,000 MTD NPK mixing facility installed.
