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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.

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.

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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.

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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

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Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

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