Notore Chemical Industries Plc in Onne, Rivers State, was purchased by Thomas Etuh, the creator of Tak Agro, for $150 million in collaboration with Theophilus Danjuma’s TY Holdings. One of the major companies in Nigeria’s fertiliser market is Tak Agro.
The agreement is anticipated to boost the nation’s fertiliser 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.
Citing Etuh in an exclusive interview with BusinessDay: “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.”
“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 added.
Stating further: “The potential we see in Notore is huge.”
Kwararafa Africa Limited, a privately held special-purpose organization, 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, he was named Deputy Managing Director.
According to information obtained by BrandSpur’s national news desk, the plant will start up in 2019.
Gas is presently being obtained to fuel the turbines, which will generate 30 to 40 watts of power, part of which will be supplied 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.
