Ebonyi State, UDS Sign MoU Development Strategy

Following the signing of a term sheet for the purchase of Ere Egwa farms, last month, UDS Plc has signed the share subscription agreement to finalise the transaction.

The company has now completed the 1st phase of its transformation strategy to becoming a fully integrated Agro Industrial National champion.

In addition to this agreement, Union Dicon plc has also signed an agreement to acquire an additional 15,000 Hectares of land in Ebonyi state for the cultivation and processing of Cassava, to Starch.

The transaction, the company said, will ensure security of feedstock supply, as UDS Plc establishes its Cassava processing facilities in Ebonyi, Edo & Delta State.

It will also fulfil management’s commitment to become cashflow positive before the end of 2016.

Professor Bernard Odoh, secretary to the State Government (SSG) of Ebonyi State, said: “This is a sign of the trust we have in Union Dicon Salt Plc, to participate in the Agricultural Industrialisation of Ebonyi State”.

Chuka Mordi, CEO of Union Dicon Salt Plc, said, “The Governor of Ebonyi State, H.E David Umahi was crucial in concluding this transaction, and his visionary outlook for the development of his state, has driven this process. We believe that the 15,000 Hectares, added to our existing operations, will enable us develop the leading Cassava & Starch operation in West Africa.”

Union Dicon Salt Plc operates in the Nigerian Consumer Goods Sector. UDS Plc has been diversifying into the Agro Industrial Sector, with an initial concentration of Cassava, and Starch processing. UDS Plc has finalised agreement with GEA Westfalia of Germany to build the largest industrial starch processing facility in Nigeria.