Shareholders of Cement Company of Northern Nigeria (CCNN) have approved the company’s merger with Kalambaina cement.
They did so during an Extra Ordinary General Meeting (EGM) held in Sokoto. The company disclosed this in a series of tweets from the BUA handle.
SHAREHOLDERS GIVE OVERWHELMING APPROVAL TO MERGE CCNN WITH BUA’s KALAMBAINA CEMENT COMPANY; …SET TO CREATE LARGEST CEMENT COMPANY IN THE CORE NORTH REGION OF NIGERIA. pic.twitter.com/nrFcLdATwp
— BUA Group (@BUAgroup) November 29, 2018
…at the Court Ordered Extra Ordinary General Meeting for Cement Company of Northern Nigeria where shareholders voted overwhelmingly (99.01%) to merge with the BUA owned Kalambaina Cement Company in Sokoto today.#BUAGroup #UnlockingOpportunities
Cc. @SokotoCement pic.twitter.com/eU9xfLgkqw
— BUA Group (@BUAgroup) November 29, 2018
The core shareholder of CCNN did not take part in the vote.
Terms of the merger
Each shareholder of Kalambaina Cement will receive 19,811,732 new ordinary shares of CCNN for every 100,000 Kalambaina cement. All assets and liabilities of Kalambaina will be transferred to CCNN. CCNN will, however, not accrue, any form of debt from the newly constructed plant.
Benefits of the merger
The merger will increase CCNN’s capacity to 2 million tonnes, which is four times its current installed capacity and economies of scale to be able to compete with more larger cement plants in Nigeria.
The merger also provides the company other energy sources and broadens its energy mix. CCNN is the only cement plant in Nigeria that relies solely on LPFO and diesel.
The merger also provides opportunities for the enlarged entity to expand into new markets, some with export potential such as Burkina Faso, and the Republics of Niger and Benin.
About CCNN
Cement Company of Northern Nigeria (CCNN) was incorporated as a public limited company in 1962 and listed on the Nigerian Stock Exchange in 1993. Damnaz Cement Company is the controlling shareholder.
About Kalambaina Cement Company
Kalamabaina Cement is a wholly owned subsidiary of BUA Cement Company. The company’s key assets include the 1.5 million metric tonnes per annum plant located in Kalambaina, Sokoto Cement
