The Board of Directors of Cement Company of Northern Nigeria, CCNN Plc and Kalambaina Cement Company Limited, a wholly owned subsidiary of BUA Cement Company Limited, have agreed to merge their businesses with CCNN as the resultant entity.
According to the statement sent to the Nigerian Stock Exchange, NSE, weekend, and signed by the Secretary of CCNN, Ahmed Aliyu, the proposed merger is subject to required regulatory and shareholders’ approval.
Floor of the Stock Exchange
Aliyu said that the Boards of both companies are resolute in their aspiration to strengthen the competitive position of the enlarged company among cement manufacturers in Nigeria. “It is in furtherance of this aspiration and a collective vision to create value for all stakeholders of both companies that the proposed merger is being considered”, he noted.
Aliyu in the statement said: “The proposed merger provides a compelling opportunity to capture significant synergies and create value for the benefit of the stakeholders of both companies in the form of stronger competitive position of the enlarged company, economies of scale, enlarged operations and administrative efficiencies which are expected to accrue from the proposed merger.” He further disclosed that as consideration for the proposed merger, the shares of CCNN will be issued and allotted to all shares of Kalambaina Cement in exchange for their shares in Kalambaina Cement at an agreed ratio based on CCNN’s 30 day volume weighted average closing price to June 22, 2018 of N25.99 per share. He disclosed that it has been proposed that each shareholder in Kalambaina Cement shall be entitled to receive 19,811,372 new ordinary shares of CCNN for every 100,000 Kalambaina Cement shares.