Post Views: 359 The Nigerian Stock Exchange (NSE) is set to list new shares in favour of Cement Company of Northern Nigeria Plc (CCNN), following shar...
The Nigerian Stock Exchange (NSE) is set to list new shares in favour of Cement Company of Northern Nigeria Plc (CCNN), following shareholders approval of its scheme of merger with BUA Group’s Kalambaina Cement Company.
The emergent CCNN has total installed capacity of two million metric tonnes per annum, bringing the total capacity of BUA’s Cement group’s operations to eight million MTPA. The group recently announced the completion of its 3million MTP Obu II Cement Plant in Okpella Edo State.
Based on the shareholders’ nod also, the CCNN/Kalambaina merger, described by the regulator as the largest deal of the year in Nigeria in 2018 at the recently held NSE CEO Awards, has received final regulatory approvals from the Securities & Exchange Commission (SEC) and the NSE.
Commenting on development, Abdul Samad Rabiu, Chairman of CCNN and Founder/Executive Chairman of BUA Group, praised the effort of all stakeholders in bringing the merger to fruition.
The expanded CCNN, he assured, will remain the market leader in its regional market of North West Nigeria – which is the third largest market for cement in Nigeria by consumption, whilst continuing to explore the huge opportunities that exist in the export markets of Niger, Burkina Faso and the west African region.
“Traditionally, the huge cost of transportation to CCNN’s home region from other cement plants in Nigeria – the nearest being about 900km away – has always given us a strategic advantage in that region over competing cement companies and brands.”
The expanded entity, Rabiu added, “will leverage on the cost and energy efficiency of the newly commissioned Kalambaina Plant whilst providing additional value through its products in terms of better quality, higher yields and a stronger cement than competing premium cement brands.”
According to an earlier statement by BUA Group, shareholders of Kalambaina Cement shall receive 19,811,372 new ordinary shares of CCNN for every 100,000 Kalambaina Cement shares.