Dipo Olowookere
By Dipo Olowookere
The proposed merger between Cement Company of Northern Nigeria (CCNN) Plc and Obu Cement Company Plc has received overwhelming approvals of shareholders of the two companies.
On Wednesday, the board of CCNN organised a court-ordered meeting in Abuja to get authorisation to formalise talks with Obu Cement Company on the planned business combination.
The event took place at the Transcorp Hilton Hotel, Abuja and from results of the votes obtained by Business Post, 99.93 percent of the shareholders approved the marriage between the two cement millers.
It was further gathered that only 0.07 percent of the shareholders were indecisive of the merger and abstained from the voting, while 0.00 percent was recorded for those who voted against the deal.
According to information gathered by this newspaper, shareholders of Obu Cement, at a different court-ordered meeting held yesterday, also almost unanimously agreed to go ahead with the merger with CCNN.
The coming together of the two organisations is expected to make the new enlarged entity the second largest producer of cement in Nigeria. The deal is expected to make the new company compete favourably with other players in the sector like Dangote Cement, Lafarge Africa and others.
In a disclosure in October, CCNN had stated that if the deal pulls through, it would be delisted on the Nigerian Stock Exchange (NSE), while the new entity, Obu Cement Company, would be listed.
“Shareholders and other stakeholders are further advised that under the terms and conditions of the Proposed Merger, all the assets, liabilities and undertakings of CCNN, including employees, real property and intellectual property rights, will be assumed by Obu Cement upon completion of the Proposed Merger. “The consideration to shareholders of CCNN will be ordinary shares of Obu Cement. Obu Cement will remain the surviving entity. Consequently, CCNN will be delisted from The NSE and Obu Cement will be listed on The NSE in its place,” the notice had said.
As earlier stated, CCNN stated that, “The boards of Cement Company of Northern Nigeria Plc (CCNN) and Obu Cement Company Plc (Obu Cement) are exploring a merger of both entities (Proposed Merger) due to a joint aspiration to ensure that the enlarged company is well positioned to grow and expand in the Nigerian cement industry.”
