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| Kalambaina Cement, CCNN get regulatory, legal merger approval |
The Cement Company of Northern Nigeria (CCNN) Plc and Kalambaina Cement Company Limited have gotten a legal and shareholder approval to merge.
Cement Company of Northern Nigeria Plc, in a statement made available on the Nigerian Stock Exchange on Monday, said the approval to merge was given at a court ordered meeting on November 29, 2018.
The statement said the merger took effect on December 24, 2018.
According to the statement, new CCNN shares have been issued and allotted to shareholders of Kalambaina Cement.
“With this development, the NSE is expected to list the shares of the expanded entity in what has been described by the regulator as the largest deal of the year in Nigeria in 2018 at its recently held NSE CEO Awards,” BUA said in statement.
The founder/executive chairman, BUA Group, Abdul Samad Rabiu, in an interview with The Cable, praised the effort of all stakeholders in bringing the merger to fruition.
He said the expanded CCNN would remain the market leader in North-west Nigeria – the third largest market for cement in the country by consumption, while 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 900 kilometre away – has always given us a strategic advantage in that region over competing cement companies and brands,” he said.
“The expanded entity 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.”
With the merger, the total installed capacity of the merged entity is expected to be two million metric tonnes per annum.
The development will bring the total capacity of BUA’s cement operations to eight million MTPA as the group recently announced the completion of its three million MTP Obu II Cement Plant in Okpella Edo state.
Cement Company of Northern Nigeria Plc, in a statement made available on the Nigerian Stock Exchange on Monday, said the approval to merge was given at a court ordered meeting on November 29, 2018.
The statement said the merger took effect on December 24, 2018.
According to the statement, new CCNN shares have been issued and allotted to shareholders of Kalambaina Cement.
“With this development, the NSE is expected to list the shares of the expanded entity in what has been described by the regulator as the largest deal of the year in Nigeria in 2018 at its recently held NSE CEO Awards,” BUA said in statement.
The founder/executive chairman, BUA Group, Abdul Samad Rabiu, in an interview with The Cable, praised the effort of all stakeholders in bringing the merger to fruition.
He said the expanded CCNN would remain the market leader in North-west Nigeria – the third largest market for cement in the country by consumption, while 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 900 kilometre away – has always given us a strategic advantage in that region over competing cement companies and brands,” he said.
“The expanded entity 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.”
With the merger, the total installed capacity of the merged entity is expected to be two million metric tonnes per annum.
The development will bring the total capacity of BUA’s cement operations to eight million MTPA as the group recently announced the completion of its three million MTP Obu II Cement Plant in Okpella Edo state.
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