Connect with us
deals book
Advertisement
Polaris bank
Advertisement
Oando
Advertisement
Alpha
Advertisement
Hotflex
Advertisement
Binance
Advertisement
Advertisement
UBA
Advertisement
Patricia
Advertisement
Access bank
Advertisement
app

Business News

CCNN announces merger plans with Kalambaina Cement

CCNN has announced a proposed merger with BUA Cement.

Published

on

The Cement Company of Northern Nigeria Plc (also known as Sokoto Cement), in a release made available to Nairametrics, has announced a proposed merger with Kalambaina Cement. The Nigerian Stock Exchange (NSE) has been informed by CCNN in this regard.

The merger will see the enlarged company’s cement production, upon approval by regulatory authorities (that is the Nigerian Stock Exchange and the Security and Exchange Commission, SEC), at a capacity of 2 million metric tonnes per annum.

CCNN currently own a Sokoto Cement Plant that boasts of 500,000 metric tonnes per annum and BUA also owns Kalambaina Cement Plant in Sokoto state with a production capacity of 1.5 million metric tonnes per annum. Also, the companies will further, through separate court-ordered meetings, obtain the approval of their respective shareholders.

As a consideration for the proposed merger, the shares of CCNN will be issued and alloted to all shareholders of Kalambaina Cement, subsidiary of BUA Cement, in exchange for their shares in Kalambaina Cement at an agreed ratio based on CCNN’s 30-day volume weighted average closing price (VWAP) to June 22, 2018 of N25.99 per share. This means each shareholder in Kalambaina Cement will be entitled to 19,811,372 new ordinary shares of CCNN for every 100,000 shares of Kalambaina Cement.

Recall that Nairametrics reported that BUA Cement was considering listing on the Nigerian Stock Exchange, as disclosed by the group’s founder Abdulsamad Rabiu.

In its FY 2017 results, CCNN hit a record profit high. The company’s revenue was up 35% from ₦14 billion in 2016 to ₦19.5 billion in 2017. Profit before tax jumped 141% from ₦1.7 billion in 2016 to ₦4.2 billion in 2017. Profit after tax increased by 157% from ₦1.2 billion in 2016 to ₦3.2 billion in 2017.

CCNN stocks are currently trading at N24.45 on the floor of the NSE. Year to date, the stock is up 142.51%

About Cement Company of Northern Nigeria Plc

Cement Company of Northern Nigeria Plc (CCNN), was incorporated in 1962 and commenced production in 1967, with an initial installed capacity of 100,000 metric tonnes per annum at the Kalambaina plant. The need to meet the increasing demand for cement necessitated an expansion of the plant with the commissioning of the second line with an installed capacity of 500,000 tons per annum in 1985. Thereafter, in 1986, the first line was shut down in 1986, leaving the plant with a rated output of 500,000 metric tonnes per annum. CCNN was listed on the NSE on October 4, 1993.

Under the privatization and commercialization programme of the Babangida administration in 1992, the Federal Government of Nigeria divested about 20% of its holding in the company and sold it to the Nigerian Public. In 2000, during the Obasanjo administration, CCNN was earmarked for full privatization, and as such, a public bidding for the Company was concluded and Scancem International ANS of Norway, a member of Heidelberg Cement Group was appointed as core investor and technical partner of the Company. Following a strategic re-orientation, Heidelberg Cement Group divested its CCNN shares in 2008. The Nigerian company Damnaz Cement Company Limited became CCNN’s new core investor.

In 2010, BUA International Limited acquired Damnaz Cement Company Limited and became indirectly the majority shareholder in CCNN and its technical partner.

1 Comment

1 Comment

    Leave a Reply

    Your email address will not be published.

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Hospitality & Travel

    FG discusses nation’s carrier, Nigeria Air with US Ambassador

    The FG has held a discussion with the US government over the establishment of a national carrier for Nigeria.

    Published

    on

    Just in: FG bars Air France, KLM and other foreign airlines, FG to spend N13 billion for automation projects in 4 airports, domestic flights, international passengers, Coronavirus: FG enforces immediate screening of travellers at airports with new directive

    The federal government has held a discussion with the government of the United States of America over the establishment of a national carrier for Nigeria.

    This was disclosed by the Minister of Aviation, Hadi Sirika via his Twitter handle after he held a discussion with the Ambassador at the United States Embassy in Abuja.

    He tweeted, “We took the opportunity to discuss investments and opportunities in the aviation sector, including national carrier. The partnership looks promising. USA is the only country we have open skies with. Thanks, Ambassador Mary and the team.”

    What you should know

    In July 2018, the Federal Government unveiled the branding and livery for the new airline, Nigeria Air, and stated that the carrier would be inaugurated at the end of that year.

    Sirika unveiled the carrier at a press conference during the Farnborough Air Show in London that year.

    “I am very pleased to tell you that we are finally on track to launching a new national flag carrier for our country, Nigeria Air. We are all fully committed to fulfilling the campaign promise made by our President, Muhammadu Buhari, in 2015. We are aiming to launch Nigeria Air by the end of this year,” the minister had said.

    He also stated that the government had obtained the Certificate of Compliance from the Nigerian Infrastructure Concession Regulatory Commission and would go into investor search.

    Hotflex
    Continue Reading

    Economy & Politics

    SERAP asks Buhari to probe N39.5 billion duplicated, mysterious projects

    SERAP has asked President Muhammadu Buhari to probe the reported N39.5 billion duplicated and mysterious projects inserted in the 2021 budget.

    Published

    on

    See what FSDH is saying about the 2020 budget and FG’s revenue drive , 2020 budget

    Socio-Economic Rights and Accountability Project (SERAP) has asked President Muhammadu Buhari to probe the reported N39.5 billion duplicated and mysterious projects inserted in the 2021 budget.

    This is to know if public funds have been diverted in the guise of implementing the projects and prosecute those allegedly involved including those from the executive and the National Assembly.

    The request from SERAP follows a report from BudgiT last week, where they alleged that there are 316 duplicated capital projects worth N139.5 billion in the 2021 budget.

    This disclosure is contained in a public statement issued by SERAP on Sunday, May 9, 2021, and can be seen on its website.

    SERAP said that the investigation of the alleged duplicated and mysterious projects, which are part of the 2021 appropriation bill of N13.588 trillion, should establish whether public funds have been mismanaged, diverted or stolen in the guise of implementing these projects.

    What SERAP is saying in its letter

    In the letter dated 8th May 2021 and signed by SERAP, Deputy Director, Kolawole Oluwadare said: “The misallocation of public funds for duplicated and mysterious projects has seriously undermined the ability of the indicted MDAs, and the government to ensure respect for Nigerians’ human rights through developing and implementing well-thought-out policies, plans, and budgets.”

    The letter from SERAP partly reads, “BudgIT had in a report last week stated that there are 316 duplicated capital projects worth N39.5 billion in the 2021 budget. The duplicated and mysterious projects are contained in the 2021 appropriation bill of N13.588 trillion signed into law in December 2020.”

    These damning revelations suggest a grave violation of the public trust, and Nigerians’ rights to education, health, water, sanitation, and clean and satisfactory environment because the indicted MDAs have misallocated public funds at the expense of the people’s access to basic public services, and enjoyment of rights.”

    Hotflex

    SERAP urges you to ask the heads of the MDAs involved to explain why they allegedly failed to ensure strict compliance with constitutional and international standards of transparency and accountability in the preparation, processes and decisions on their budgets, and to return any misallocated public funds to the public treasury.”

    Investigating and prosecuting any allegations of mismanagement, diversion and stealing of public funds budgeted for the 316 duplicated and mysterious projects would allow your government to use the budget to effectively promote Nigerians’ access to essential public goods and services.

    Publishing the ‘implementation status’ of the duplicated and mysterious projects would allow Nigerians to hold their government to account in the spending of public funds. This is particularly true for marginalized and excluded groups, such as people living in poverty, women, children, and persons with disabilities, as the budget has a disproportionate impact on their welfare.”

    We would be grateful if the recommended measures are taken within 14 days of the receipt and/or publication of this letter. If we have not heard from you by then, the Incorporated Trustees of SERAP shall take all appropriate legal actions to compel your government to comply with our request in the public interest.” 

    SERAP also urges you to direct Mrs Zainab Ahmed, Minister of Finance Budget and National Planning to publish full details of current ‘implementation status’ of the duplicated and mysterious projects, and any spending on the projects to date, including the 115 projects inserted in the budget of the Ministry of Health; the 23 projects inserted in the budget of the Ministry of Education, and 10 projects inserted in the budget of the Ministry of Water Resources.

    The following ministries are reportedly involved in the duplicated and mysterious projects: Ministry of Health with 115 projects; Ministry of Information and Culture with 40 projects; Ministry of Agriculture and Rural Development with 25 projects; Ministry of Education with 23 projects; Ministry of Transportation with 17 projects; and Ministry of Science and Technology with 17 projects.”

    Others are the Ministry of Environment with 13 projects; Ministry of Power with 11 projects; Ministry of Labour and Employment with 11 projects, and Ministry of Water Resources with 10 projects.”

    Jaiz bank

    The letter was copied to Mr Malami; Professor Bolaji Owasanoye, Chairman Independent Corrupt Practices and Other Related Offences Commission (ICPC); Mr Abdulrasheed Bawa, Chairman, Economic and Financial Crimes Commission (EFCC); and Mrs Ahmed, the Finance Minister.

    Continue Reading

      





    Nairametrics | Company Earnings

    Access our Live Feed portal for the latest company earnings as they drop.