The Cement Company of Northern Nigeria Plc (CCNN), has received formal approval of the Securities and Exchange Commission (SEC) for the proposed merger with Kalambaina Cement Company Limited.
This development follows CCNN’s announcement regarding the merger. Accordingly, the Scheme of merger was effective as of December 24, 2018.
Pursuant to the merger becoming effective, new CCNN shares have been issued and allotted to all shareholders of Kalambaina Cement in exchange for their Kalambaina Cement shares at the agreed ratio as disclosed in the Scheme document and approved by CCNN and Kalambaina Cement Shareholders.
The merger is expected to see the company’s cement production enlarged 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, a cement firm that also owns Kalambaina Cement Plant in Sokoto state can boast of a production capacity of 1.5 million metric tonnes per annum.
About the cement companies
Cement Company of Northern Nigeria Plc (CCNN) manufactures and sells cement in Nigeria. The company sells cement under the Sokoto Cement brand name. It primarily markets in Sokoto, Kebbi, Zamfara, Katsina, Kano, and Kaduna states. The company was incorporated in 1962 and is headquartered in Sokoto, Nigeria.
CCNN was established 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 is a subsidiary of BUA International Limited. The company traded N19.40 on the NSE floor on December 31, 2018.
On the other hand, Kalambaina Cement Company Limited is a private limited liability company incorporated in Nigeria. The company is a wholly owned subsidiary of BUA Cement Limited and is primarily engaged in the business of quarrying, extracting, processing and dealing in limestone as well as the manufacture and supply of cement.
Kalambaina Cement Company Limited’s key cement assets include the brand new 1.5 million metric tonnes per annum cement production plant situated in Kalambaina, Sokoto State.