Rabiu Lists Benefits of CCNN, Obu Cement Merger to Shareholders

By Modupe Gbadeyanka

Chairman of Cement Company of Northern Nigeria (CCNN) Plc, Mr Abdulsamad Rabiu, has assured shareholders of the cement firm that they stand to gain a lot from the business combination between CCNN and Obu Cement Company Plc.

At a court-ordered meeting held at Transcorp Hilton Hotel, Abuja, majority of the company’s investors voted to stamp the proposed merger between the two companies.

At the meeting presided over by Mr Rabiu, 157 out of the 170 accredited shareholders voted in favour of the deal, representing 99.93 percent of the 307,027,755 shares of those at the gathering.

Addressing the shareholders after the exercise, Mr Rabiu, who is Chairman of BUA Group, which only recently merged with CCNN through one of its subsidiaries, Kalambaina Cement, noted that, “The total number of shares held by shareholders present and who voted was 307,027,755 shares, and voted in favour of the resolution approving the scheme which represents 99.93 percent.”

“Based on the results of the poll, the motion for the merger of CCNN with Obu Cement was unanimously carried,” he stated further.

Mr Rabiu said, “The report of the result of this meeting will be filed with the Securities and Exchange Commission for its final approval. Following the final approval by SEC, a copy of the result will also be submitted to the Federal High Court.”

Announcing what shareholders of CCNN stand to gain from the deal, when finally approved by SEC and the court, the businessman said they are “well positioned to benefit from the stronger position of the enlarged company due to greater economies of scale and enhanced operating and administrative efficiencies which are expected to accrue from the proposed merger.”

Speaking further, he said the new company, Obu Cement, will create a platform for further investment that will have a positive impact on the communities where the operations of the companies are present as well as for the economy as a whole.

According to him, the enlarged organisation would be highly profitable with creation of additional value for them.