By Peter Egwuatu
Following the approvals of the shareholders of Cement Company of Northern Nigeria, CCNN Plc, and Kalambaina Cement Company Limited, wholly-owned subsidiary of BUA Cement Limited, at their respective court-ordered meetings and the requisite sanction of the Federal High Court of Nigeria, the Securities and Exchange Commission, SEC, has finally approved the proposed merger of the entities.
The CCNN, yesterday, disclosed that it has received formal approval of the SEC for the proposed merger between it and Kalambaina Cement Company Limited.
Accordingly, the scheme of merger was effective as of December 24, 2018. Pursuant to the merger becoming effective, 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 CCNN and Kalambaina Cement Shareholders.
The merger is expected to see the company’s cement production enlarged at a capacity of 2 million metric tonnes per annum.
CCNN currently own a Sokoto Cement Plant that boasts of 500,000 metric tonnes per annum and BUA, a cement firm that also owns Kalambaina Cement Plant in Sokoto state can boast of a production capacity of 1.5 million metric tonnes per annum.
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CCNN manufactures and sells cement in Nigeria. The company sells cement under the Sokoto Cement brand name. It primarily markets in Sokoto, Kebbi, Zamfara, Katsina, Kano, and Kaduna states. The company was incorporated in 1962 and is headquartered in Sokoto, Nigeria.
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.