Cement Company of Northern Nigeria (CCNN) Plc has concluded its business combination with Kalambaina Cement Company Limited with the listing of the scheme shares that arose from the merger on the Nigerian Stock Exchange (NSE).
The supplementary listing lifted CCNN to the 12th most capitalised company at the stock market, with a market value of N254.98 billion at the close of trading on December 31, 2018.
CCNN on Monday listed 11.887 billion ordinary shares of 50 kobo each on the Daily Official List of the Exchange, raising the cement company’s total issued and fully paid up shares from 1.257 billion ordinary shares of 50 kobo each to 13.143 billion ordinary shares of 50 kobo each.
CCNN and Kalambaina Cement Company, a wholly-owned subsidiary of BUA Cement Company Limited, had merged to strengthen CCNN as Northwest Nigeria’s largest cement company. Both CCNN and Kalambaina Cement are based in Sokoto.
CCNN has a 500,000-metric tonne per year cement plant while Kalambaina Cement has a 1.5 million metric tonnes per year plant, making a combined capacity of two million metric tonnes per year. Kalambaina Cement plant uses alternative fuel, such as coal, heavy oils and gas, and it is expected to help solve the power problem with limited downtime and further opportunities for growth and expansion.
CCNN and Kalambaina Cement Company have related core investor. Damnaz Cement Company Limited holds 50.7 per cent majority equity stake in CCNN. Alhaji Abdul Samad Rabiu holds the majority equity stake in Damnaz while his company, BUA International Limited holds the remaining minority stake in Damnaz.