TY Danjuma Buys Jite Okoloko’s Fertiliser Company, Notore, For $150m

The deal is expected to have a positive impact on the country’s fertiliser industry as it will provide the much-needed capital to revamp Notore’s entire complicated process plant while returning profits to shareholders.

Notore Chemical Industries recorded a group loss after tax of N34.6 billion in the first quarter (Q1) of 2024, from N7.9 billion loss after tax declared in the corresponding period of 2023.

Its revenue for the period declined by 94.5 percent to N224.9 million in Q1 of 2024, from N4.1 billion in the corresponding 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 BusinessDay.

“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 noted.

“The potential we see in Notore is huge,” he added.

The deal was structured as a special placement by Kwararafa Africa Limited, a privately-held special purpose vehicle, for 60 percent and management control of the company.

Since the acquisition, Notore Chemical Industries has undergone significant management changes, evidenced by the resignation of seven non-executive directors and the group deputy managing director, as of May 31, 2024.

In June, Etuh was appointed Notore’s new board chairman.

Danjuma Etuh was appointed as deputy managing director, alongside six new non-executive directors to its board.

BusinessDay gathered that the plant will commence production next year as gas is currently being sourced to fire the turbines that will produce 30 to 40 watts of power, some of which will be sold to the local distribution company.

Once up and running, the intention is to invest in a second train, in three to four years, which will take capacity to two million tonnes per year.

Notore produces urea, NPK, and ammonia and owns a urea-producing plant in Onne, Rivers State, with a current annual design production capacity of approximately 500,000 metric tons per annum (MTPA) of urea and 330,000 MTPA of ammonia. Also, it has an installed 2,000 MTD NPK blending plant.