Union Dicon Salt can’t trace 40% shareholder from 1980s. Here’s what you need to know

Union Dicon Salt Plc has disclosed that it has been unable to reach AIMS Limited, the Brazilian partner that holds 40% of its shares — a stake dating back to the company’s founding in the 1980s.

In a regulatory filing to the Nigerian Exchange Limited (NGX), the company said AIMS Limited owns 64 million shares, representing 40% of its issued share capital, but has not responded to repeated attempts at communication. Union Dicon publicly requested that the shareholder contact its office at Kirikiri Lighter Terminal in Lagos.

The disclosure comes as the company’s shares have surged 141% year-to-date, closing at ₦16.60 on March 3, ranking among the NGX’s top-performing stocks in 2026.

Background

Union Dicon Salt was established in 1984 as a 60–40 joint venture between Nigeria’s Defence Industries Corporation (DICON) and AIMS of Brazil, which served as its technical partner during the military era.

By 1987, the company had opened a factory at Kirikiri Lighter Terminal in Lagos, importing bulk salt for refining and distribution through its network. Operations were suspended in 1988 following a price war but resumed nine months later after facility upgrades.

In 1991, Dicon Salt merged with Union Salt Limited and was incorporated as Union Dicon Salt Ltd. The company later became a public limited company and was listed on the Nigerian Stock Exchange in September 1993. It went dormant and was effectively off the market by 2004 before being relaunched in August 2025.

Union Dicon currently has an authorised share capital of ₦300 million, corresponding to 600 million units at 50 kobo each.

What Does This Mean?

There is no indication that AIMS Limited’s shares are invalid. The issue, as disclosed, is an inability to establish contact.

However, a 40% shareholding is substantial. Such a block can influence voting outcomes at annual general meetings, dividend entitlements, major restructuring decisions and potential takeover or control scenarios.

If a shareholder of that size remains unreachable, it could complicate key corporate actions.

What Happens Next?

Under Nigerian company law, prolonged inability to contact a major shareholder may require regulatory steps, particularly where dividends go unclaimed or where resolutions require supermajority approval.

For now, the company says it is seeking to re-establish communication.

The development presents an unusual corporate twist: a company enjoying one of the strongest rallies on the NGX while attempting to reconnect with a founding shareholder that controls nearly half its equity.

For investors, the central question is whether the silence is merely administrative — or whether it could evolve into a broader ownership and governance issue.