CCNN, Obu Cement Plc explore merger option to strengthen operation
In a move to reposition their operations in the cement industry, Cement Company of Northern Nigeria (CCNN) announced this morning decision to join operations and assets with BUA’s Obu Cement company.
In the recent time, rivalry in the cement industry has turned fierce, and executives are looking deep into various ways to obtaining value from strapped macroeconomic condition.
In this light, the CCNN said in a release made available to the Nigerian Stock Exchange, NSE, that the two cement operators are exploring a merger of both entities.
The management proposed Obu Cement Company to be surviving entity if the deal goes through.
In the stock exchange, CCNN is valued at N208.981 billion on shares outstanding of 13,143,500,966 while the share s trade at N15.90.
The company in a release notifies that the two cement operators’ proposal is due to joint aspiration to ensure that the enlarged company is well position to grow and expand in the industry.
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The management said that the requisite pre-merger approvals have been obtained from the Federal Competition and Consumers Protection Commission and the Securities and Exchange Commission.
Also, the management said a no-objection to the proposed merger has been obtained from the NSE.
CCNN, Obu in a release stated that they have obtained order from the Federal High Court to convene separate Court-Ordered meetings.
At the meeting, respective shareholders would be engaged with their separate Board of Directors to obtain further information as part of approval processes.
Meanwhile, under the term and condition of the deal, all assets and liabilities and undertaking of CCNN will be assumed by Obu cement.
Consequently, CCNN will be delisted from the NSE as Obu will be listed in its place.
The completion of the proposed merger is subject to shareholders approval of the two entities, as well as regulatory consents.
Detail about the merger is sketch now, as neither Sada Suleiman, the spokesperson for CCNN nor its Managing Director, Yusuf Binji responds to text messages and call.
