The Nigerian Stock Exchange (NSE), on Monday December 31, 2018, added 11.887bn units to those outstanding in the name of Cement Company of Northern Nigeria Plc (CCNN) in the Daily Official List, in the aftermath of its merger with sister company- Kalambaina Cement.
This followed the regulatory and shareholder approval of the Scheme of Merger, as well as the eventual sanction by the Federal High Court.
The new listing raised total issued and fully paid up shares of CCNN from 1.257bn ordinary shares of 50 kobo each to 13.143bn ordinary shares of 50 kobo each.
The new listing is coming just as the company’s share price and market value on the NSE soared by 110% at the close of trading on December 31, 2018 to N254.983bn shortly after the merger with Kalambaina Cement Company Limited was approved by the regulators.
According to a statement, CCNN and Kalambaina Cement Company, both based in Sokoto, north-west Nigeria, are wholly-owned subsidiaries of BUA Cement Company Limited, which were merged to strengthen CCNN as the country’s largest cement company in the core northern region.
Also, the emergent CCNN now has a 2.0m metric tonne per year combined capacity and will leverage on the energy efficiency of the kalambaina plant which uses alternative fuel, such as coal, heavy oils and gas, and it is expected to help solve the power problem with limited downtime and further opportunities for growth and expansion.
The merger brings total capacity of BUA’s Cement operations to 8mmtpa, following the recent completion of BUA Obu Cement Line 2 in Okpella, Edo State.
