NSE Approves Listing of Obu Cement Company Shares

December 23, 2019
Obu Cement Company

By Modupe Gbadeyanka

The application filed by the board of directors of Obu Cement Company Plc for the listing of its ordinary shares on the Nigerian Stock Exchange (NSE) has been approved.

Business Post reliably gathered at the weekend that the request was approved by the stock market regulator last week.

The cement firm had directed its stockbrokers, APT Securities and Fund Limited; and Stanbic IBTC Stockbrokers Limited, to formally write to the NSE for the admittance of its shares on the trading platform.

According to a regulatory document sighted by Business Post at the weekend, this application was approved by the stock exchange on Tuesday, December 17, 2019 after meeting all the requirements for listing on the exchange.

Obu Cement Company recently merged with Cement Company of Northern Nigeria (CCNN) Plc after shareholders approved the marriage between them at two separately held Court Ordered Meetings.

The merger was to enable them expand their operations and market in the country, making the new enlarged entity, Obu Cement, the second largest cement maker in Nigeria and West Africa.

According to the NSE document, the application was “for the approval to list the ordinary shares of Obu Cement Plc via a scheme of merger between Cement Company of Northern Nigeria Plc and Obu Cement Company Plc.”

It was learned that Stanbic IBTC Capital Limited; and Rand Merchant Bank Nigeria Limited acted as the issuing house(s)/financial adviser(s) to the transaction.

During the CCNN’s COM held in Abuja earlier this month, Chairman of the company, Mr Abdulsamad Rabiu, had assured shareholders of the cement firm that they stand to gain a lot from the business combination between both firms.

According to him, the shareholders were “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.”

He had expressed confidence that Obu Cement Company would 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, adding that the enlarged organisation would be highly profitable with creation of additional value for them.

At the gathering at Transcorp Hilton Hotel, Abuja, 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 present.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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