By Ndubuisi Francis in Abuja
Shareholders have endorsed the merger bid of Cement Company of Northern Nigeria (CCNN) and Obu Cement Plc, a union that is designed to create greater economies of scale and enhanced operating and administrative efficiencies.
The shareholders’ approval, which took place in Abuja at a court-ordered general meeting, witnessed 157 out of the 170 accredited shareholders voting in favour of the resolution for a merger.
The CCNN Chairman, Alhaji Abdulsamad Rabiu, who presided over the meeting said: “The total number of shares held by shareholders present and who voted was 307,027,755 shares, and voted in favour of the resolution approving the scheme which represents 99.93 per cent. Based on the results of the poll, the motion for the merger of CCNN with Obu Cement was unanimously carried.
“The report of the result of this meeting will be filed with the Securities and Exchange Commission for its final approval. Following the final approval by SEC, a copy of the result will also be submitted to the Federal High Court.
“The shareholders of the merging entities are 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 noted that shareholders of the merging groups are to become shareholders of a larger and highly profitable entity, adding that synergies created as a result of the merger would create additional
value for them.
The enlarged company, he explained, will 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.
The proposed merger, which is to receive final approval from the regulatory authority — Securities and Exchange Commission (SEC) will increase the production capacity of the enlarged company to 8 million metric tonnes per annum (MTPA).
It is anticipated that in addition to meeting the demand from customers in the core regions in the country, the enlarged company would be positioned to distribute its products in new geographical markets, creating the potential for additional shareholder value creation.