The Cement Company of Northern Nigeria (CCNN) PLC, on Thursday formally merged with Kalambaina Cement Company Limited in Sokoto to form an enlarged company.
The News Agency of Nigeria (NAN) reports that the merger followed the scheme of the merger agreement voted for by 99.01 per cent of the CCNN shareholders at an extra ordinary general meeting of CCNN shareholders in Sokoto.
NAN reports that 0.63 per cent of stakeholders voted against the merger while 0.36 per cent abstained from voting during the meeting.
Earlier, the Chairman Board of Directors of CCNN, Abdussamad Rabiu, presented a proposed scheme of merger at the meeting, saying the merger would provide an opportunity for an expanded company.
“The proposed merger will provide an opportunity for the enlarged company to benefit from economies of scale in manufacturing, procurement and distribution.
“Stakeholders of CCNN will become shareholders of a large and potentially more profitable entity. Synergies created as a result of the proposed merger will create additional value for shareholders.
“Moreover, we expect the merger to provide opportunities for significant cost savings and improved operational efficiencies by streamlining operations and optimising use of combined resources.
“More so, it will increase the production capacity of the enlarged company to two million metric tonnes per annum,” he said.
Rabiu added that the merger was expected to meet the demand of the customers in the core regions in the country and would be positioned to distribute its products in new regions.
The chairman further said that the merger would be effected through a scheme of merger pursuant of part XII of the Investments and security Act No. 29 of 2018.
He said that the Kalambaina Cement 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 and processing of limestone and the manufacture and supply of Cement.
“Kalambaina Cement’s key cement assets include its 1.5 million metric tonnes per annum cement production plant situated in Sokoto state.
“The plant is configured to operate on multiple fuel sources including coal and low pour fuel oil and is equipped with a 32 Mega Watts power plant which will supply the plant’s non-kiln operations,” he added.
According to him, with the proposed merger the staff strength will increase from 4,000 to 5,000 while the enlarged company will attract 1,000 directors.