Nigerian Stock Exchange (NSE) yesterday placed the shares of Cement Company of Northern Nigeria (CCNN) on suspension as part of process to conclude the merger between the company and Obu Cement Company.
Specifically, the suspension is to prevent trading in the shares of the company beyond the effective date the court sanction will be registered with the Corporate Affairs Commission (CAC) of the scheme of merger between the two companies.
Shareholders of both recently approved the merger of the two firms at separate court-ordered and extra-ordinary general meetings(EGMs) in Abuja. After final regulatory approvals CCNN will merge with the Obu Cement Company and solidify BUA Cement’s drive to be the country’s second largest producer of cement by volume by 2020.
Speaking on the development, Chairman, CCNN and Founder, BUA Group, Abdul Samad Rabiu, said: I thank shareholders of both companies who voted overwhelmingly to approve this merger to mark the completion of yet another phase of our local cement expansion programme. This deal will create one of the largest companies in Nigeria and the Nigerian stock exchange.
It will also ensure a more efficient operation, improved financial performance and create better value for all stakeholders. We are certain that the new entity can continue to compete effectively in the cement industry in Nigeria with its more advanced plants and geographical advantages whilst maintaining its market dominance in its key regions.
According to him, the new, enlarged cement companywill be 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.
“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 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 said.
Meanwhile, the equities market sustained its bearish momentum as the Nigerian Stock Exchange (NSE) All-Share Index fell by 0.1 per cent to close at 26,090.88. Market capitalisation shed N11.1 billion to close at N12.6 trillion. However, activity level was mixed as volume traded rose 71.8 per cent to 324.4 million shares while value traded fell 31.7 per cent to N1.7 billion.