SEC, NSE approve BUA, Company of Northern Nigeria merger

The Securities & Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) have approved the merger between Cement Company of Northern Nigeria (CCNN) and BUA Group’s Kalambaina Cement Company. Recently, CCNN announced that it has received approval from the SEC as well as the requisite sanction of the Federal High Court, Lagos for the merger of the two companies, thereby creating the second largest cement company on the Nigerian bourse after Dangote Cement. With the merger, which has adopted the CCNN corporate name, new CCNN shares have been issued and allotted to all shareholders of Kalambaina Cement in exchange for their Kalambaina Cement shares at the agreed ratio as disclosed in the Scheme document and approved by both firms Shareholders. Also, the new combined company has an installed capacity of two million metric tons per annum (MTPA), and recently had its shares listed on the Nigerian Stock Exchange. In total, 11,886,823,259 new shares of Kalambaina Cement have been issued at N25.99 per share, in addition to the 1.257 billion shares of CCNN, thereby bringing the current volume of shares for the total combined entity to 13.1 billion. The development will bring the total capacity of BUA’s cement operations to eight million MTPA as the group recently announced the completion of its’ three million MTP Obu II Cement Plant in Okpella Edo state. Cement Company of Northern Nigerian PLC is a public limited liability company incorporated in 1962 and listed on the Nigerian Stock Exchange in 1993. CCNN is the only cement plant in the North Western part of Nigeria, operating a 500,00 metric tonnes per annum cement plant commissioned in 1985. On the other hand, Kalambaina Cement Company Limited is a private limited liability company incorporated in Nigeria. The company is a wholly owned subsidiary of BUA Cement Limited and is primarily engaged in the business of quarrying, extracting, processing and dealing in limestone as well as the manufacture and supply of cement. Kalambaina Cement Company Limited’s key cement assets include the brand new 1.5 million metric tonnes per annum of cement production plant situated in Kalambaina, Sokoto State. Temitope Adebayo