PROPOSED MERGER OF CEMENT COMPANY OF NORTHERN NIGERIA PLC AND KAIAMBAINA CEMENT COMPANY LIMITED

Must Read

TAJBank Launches Nigeria’s 2nd Non-Interest Financial Institution (Photos)

Abuja Nigeria   December 2nd 2019, TAJBank, Nigeria’s second Non –Interest financial institution, has announced the launch of its services...

Top 10 Most Expensive Universities In Nigeria

For many Nigerians, high-quality higher education is a luxury. There are many private universities who are known not only...

2019 Review & 2020 Outlook – LBS Executive Breakfast Session (December 2019)

Nigeria – No longer a smugglers paradise The Jury is out as to whether the present border closure in Nigeria...
- Advertisement -
- Advertisement -

The Boards of Directors of Cement Company of Northern Nigeria Plc (“CCNN“) and Kalambaina Cement Company limited (“Kalambaina Cement”), a wholly owned subsidiary of BUA Cement Company Limited, have agreed to merge their businesses, with CCNN as the resultant entity, subject to required regulatory and shareholders’ approvals (the “Proposed Merger”).

The Boards are resolute in their aspiration to strengthen the competitive position of the enlarged company among cement manufacturers in Nigeria. It is in furtherance of this aspiration and a collective vision to create value for all key stakeholders of both companies that the Proposed Merger is being considered.

The Proposed Merger provides a compelling opportunity to capture significant synergies and create value for the benefit of the shareholders of both companies in the form of the stronger competitive position of the enlarged company, economies of scale, enhanced operations and administrative efficiencies which are expected to accrue from the Proposed Merger.

Read:  Average Bus Fare Decreases in December 2018 – NBS

As consideration for the Proposed Merger, the shares of CCNN will be issued and allotted to all shareholders of Kalambaina Cement in exchange for their shares in Kalambaina Cement at an agreed ratio based on CCNN’s 30-day volume weighted average closing price (“VWAP”) to 22 June 2018 of N25.99 per share.

Read:  Universal Insurance Plc Announces Filing Of 2016 Audited Financial Statements

It is proposed that each shareholder in Kalambaina Cement shall be entitled to:

RECEIVE FOR 19,811,372 new ordinary shares of CCNN Every 100,000 (one hundred thousand) Kalambaina Cement shares.

Should the necessary’ regulatory approvals, including those of The Nigerian Stock Exchange and the Securities and Exchange Commission be received, the parties will lake further steps to consummate the proposed combination including obtaining the approval of their respective shareholders at separate Court-Ordered Meetings.

Read:  No Stability, No Democracy Bumpy Road Ahead, Fasten Your Seat Belts – LBS Breakfast Session (Oct'18 Edition)

Further developments will be communicated in due course.

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Vingroup Launches 5 First Smart TV Models

HANOI, VIETNAM - Media OutReach - 15 December 2019 - On December 14, 2019, Vinsmart Research and Manufacture Joint Stock Company (Vingroup member)...

2019 Review & 2020 Outlook – LBS Executive Breakfast Session (December 2019)

Nigeria – No longer a smugglers paradise The Jury is out as to whether the present border closure in Nigeria should be extended or shortened....

Inflation, Rolling with the Punches “Border closure, Lower interest rates…”

Based on our survey, headline inflation for November is projected to increase to 11.88% from 11.61% in October. In the last six months, headline...

Agusto & Co announces the retirement of its Chief Executive Officer, Vivien Shobo

Agusto & Co, Nigeria’s foremost Credit Rating Agency, has announced the retirement of its Chief Executive Officer - Vivien Shobo, effective 31 December 2019....

More Articles Like This