Modupe Gbadeyanka
By Modupe Gbadeyanka
**Lists 33.9bn Shares Worth N1.2trn at N35 Each
Managing Director of BUA Cement Plc, Mr Yusuf Binji, has said shareholders of the company should expect greater value for their investment in the firm.
He said the recent mergers will bring about increased capacity to service new and existing markets, increased operational efficiencies, economies of scale, increased profitability and creation of a platform for further investment that will have a positive impact on host communities.
On Thursday, a total of 33,864,354,060 ordinary shares of 50 kobo each of BUA Cement Plc were listed on the Nigerian Stock Exchange (NSE) at a unit price of N35.
The admission of BUA Cement boosted the market capitalisation of the nation’s stock market by N1.2 trillion, pushing the total value of stocks on the exchange to N15.164 trillion yesterday from N13.787 trillion the previous day.
With its listing yesterday, BUA Cement, owned by Nigerian billionaire businessman, Mr Abdulsamad Rabiu, is now the third biggest company on the NSE by market value.
At its listing, the NSE assigned the trading symbol BUACEMENT to BUA Cement after confirming the change of name from Obu Cement, which was the initial name earlier pushed forward.
BUA Cement Plc came into the picture after Cement Company of Northern Nigeria (CCNN) merged with Obu Cement, a company believed to be owned by Mr Isiaka Rabiu.
CCNN was the entity initially on the exchange, but after the ‘marriage’ with Obu Cement, its 13,143,500,966 ordinary shares were delisted from the daily official list of the NSE to pave way for BUA Cement.
Shareholders of CCNN and Obu Cement at separate Court-Ordered Meetings approved the deal and agreed that shareholders of the former would be given one share in Obu Cement (now BUA Cement Plc) for every one share held in CCNN.
Business Post gathered that the 33,864,354,060 shares of BUA Cement comprise 13,143,500,966 units of CCNN and 20,720,853,094 units of Obu Cement.
