Yusuf Binji leads BUA Cement to emerge as third largest on NSE. The BUA Cement Plc. www.buagroup.com has listed 33.86 billion shares valued at N1.18 trillion on the Nigerian Stock Exchange on Thursday.
This listing makes the cement company to emerge as third largest on the local bourse, thus pushed market capitalisation to N15.16 trillion.
BUA Cement listed the shares at N35 per ordinary share as ordinary shares of the defunct Cement Company of Northern Nigerian was delisted.
Yusuf Binji, the Managing Director/CEO of BUA Cement, said it was a major fulfillment for the group to have its shares listed after a merger of the two companies.
Binji said that the listing of BUA followed the merger of Cement Company of Northern Nigeria (CCNN) and Obu Cement Company Limited that control significant markets in Southern and Northern parts of the country.
With the listing of its 33.86 billion shares, BUA Cement Plc. has achieved a feat on the Nigerian Stock Exchange (NSE), emerging as the third largest company on the bourse.
Speaking on the listing in Lagos, NSE Chief Executive Officer, Oscar Onyema, said that it was exciting for the exchange to record such major listing at the beginning of the year.
Onyema said it was another opportunity for investors to have access to a company with good track record.
He explained that the company had plans to move to the Premium Board of the NSE in a very short period of time.
“We are bringing in about 13 billion shares from the defunct CCNN and 20 billion from Obu Cement and this gives us a total share capacity of about 33 billion shares with a total market capitalisation of N1.8 trillion.
“We are coming into the market at the beginning of the year, and since trading has commenced, we expect to see a lot of value added for the shareholders during the course of the year,” BUA Managing Director said.
Binji said that the enlarged firm’s total installed capacity stood at eight million metric tonnes per annum (mtpa).
He said that the company decided to merge to create a single entity that would leverage on all the synergies.
Binji said that the merger would ensure increased profitability and dividend for investors.
“The essence of the merger is to be able to tap into the potentials and unlock the opportunities that are within the two companies in terms of market size, dealership base, and profitability and staff skills.
“There will be a lot of positives as we go along the way,” he added.
He said with the listing, shareholders should expect better returns because the company would be one of the top best dividend paying companies in Nigeria.
Binji said that the enlarged company would be positioned to distribute its products in new geographical markets, creating the potential for additional shareholder value creation.
“The merger of the two companies to become BUA Cement would provide opportunities for significant cost savings and improved operational efficiencies by streamlining operations and optimising the use of combined resources.
“It has also provided a platform where the enlarged company benefits from economies of scale in procurement, distribution and manufacturing of the products offered to our customers.
“We expect the benefits accruing from greater economies of scale to accrue to many stakeholders,” he said.
Read:https://dmarketforces.com/ccnn-obu-cement-plc-explore-merger-option-to-strengthen-operation/
By Ogochi Ndubuisi
