Shareholders Okay CCNN, Kalambaina Merger
By Dipo Olowookere
On Thursday, November 29, 2018, at two separate court ordered Extra-Ordinary General Meetings held in Sokoto, shareholders of shareholders of Cement Company of Northern Nigeria (CCNN) Plc and BUA Group’s Kalambaina Cement Company approved the merger of both companies.
However, the actions of shareholders of these two cement firms are still subject to the final approval of regulatory agencies.
With this shareholder approval, the new CCNN, which is listed on the Nigerian Stock Exchange (NSE), will have a total installed capacity of 2 million metric tonnes.
Armed with this weapon, the company hopes to be the dominant cement player in the key regional markets in Northern Nigeria with almost unfettered access to key export markets in West Africa.
Kalambaina Cement Company is owned by Mr Abdul samad Rabiu’s BUA Group, a key rival of Dangote Cement, a major player in the cement industry in Nigeria.
With this merger, BUA Group hopes to solidify its drive to being Nigeria’s second largest producer of cement by volume in 2019.
Speaking on the development, Mr Rabiu, who doubles as Chairman of CCNN Plc, said, “This deal signposts shareholder confidence in the value proposition of the CCNN-Kalambaina Merger and we are certain that the new entity can compete effectively in the cement industry in Nigeria whilst maintaining its market dominance in this region.”
He said further that, “The new enlarged CCNN is a stronger platform to capture significant synergies and create value for the benefit of the shareholders in the form of stronger competitive position, economies of scale, enhanced operations and administrative efficiencies which are expected to accrue.”
While thanking “shareholders of both companies who voted overwhelmingly to approve this merger, Mr Rabiu stressed that, “Our commitment towards the Nigerian economy remains strong and this new entity further deepens the capital market and is a pointer to the continued resurgence of the Nigerian economy.”
“We remain committed to delivering exceptional value to stakeholders at all times. Innovation, efficiency and best-in-class technology will continue to be the key drivers of our cement business,” he assured.