By Modupe Gbadeyanka
Cement Company of Northern Nigeria (CCNN) Plc, a firm listed on the Nigerian Stock Exchange (NSE), is holding a court-ordered meeting in Abuja today, Wednesday, December 4, 2019.
During the meeting, shareholders of the cement giant will vote to authorise the board to go ahead with its proposed merger with another cement miller, Obu Cement Company Plc.
In October 2019, CCNN announced it was planning to form alliance with Obu Cement Company to enable it expand its operations and further deepen its market share. This came months after CCNN merged with Kalambaina Cement owned by BUA Group, one of the rivals of Dangote Group, owners of Dangote Cement Plc.
Business Post reports that the court-ordered meeting is taking place at the prestigious Transcorp Hilton Hotel, Abuja and images from the venue showed that all is set for a smooth gathering.
In a disclosure in October, CCNN 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.”
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