By Dipo Olowookere
The board of Cement Company of Northern Nigeria (CCNN) Plc has disclosed that approvals have been obtained from the duo of the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) for its planned merger with Kalambaina Cement Company Limited, a wholly owned subsidiary of BUA Group, a main rival company to Dangote Cement Plc owned by Mr AbdulSamad Isyaku Rabiu.
In a statement issued by the board of CCNN, it was disclosed that the approvals received from the regulators were mainly pre-merger.
Business Post recalls that on June 27, 2018, CCNN announced its intention to form an alliance with Kalambaina Cement to boost its operations and earnings.
When finally completed, all the assets, liabilities, licenses and undertakings of Kalambaina Cement, including employees, real properties and intellectual property rights, will be taken over by CCNN.
According to CCNN, the consideration to shareholders of Kalambaina Cement will be ordinary shares of CCNN.
The share exchange ratio of 19,811,273 new ordinary shares of CCNN for every 100,000 Kalambaina Cement shares, as well as other terms and conditions of the proposed merger are provided in the Scheme of Merger Document which will be dispatched to all shareholders of CCNN and Kalambaina Cement upon receipt of an order from the Federal High Court to convene separate Court-Ordered meetings of CCNN and Kalambaina Cement.
“The respective board of directors of CCNN and Kalambaina Cement recommend the proposed merger to shareholders and will be seeking their support and approval at the respective Court-Ordered Meetings,” the statement said.
It was stressed that the completion of the proposed merger is subject to the approval of the respective shareholders of CCNN and Kalambaina Cement and the final regulatory approvals from SEC, NSE, Federal Inland Revenue Service (FIRS), as well as the sanction by the court.
Business Post reports that at the close of business on Monday, the shares of CCNN were traded on the stock exchange at N25 each, the same rate they were sold at the previous session.
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