Shareholders of Cement Company of Northern Nigeria (CCNN) plc has agreed a merger agreement with the Kalambaina Cement Company Limited in Sokoto State.
The merger followed an extra-ordinary general meeting held, in Sokoto, by all CCNN shareholders to that effect.
Kalambaina Cement Company is believed to worth $350 million.
The Kalambaina Cement Plant situated, in Sokoto State, with an installed capacity of 1.5 million metric tonnes per annum is adjudged to be the largest single private sector-led investment in the North West zone.
Chairman, Board of Directors of CCNN, Alhaji Abdussamad Rabiu, in a proposed scheme of merger presented at the meeting, said the merger would provide an opportunity for the enlarged 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 for annum,” he said.
He added that the merger was anticipated to meeting the demand of the customers in the core region in the country and the enlarged company would be positioned to distribute its products in new region.
The Board chairman further said that the merger will 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 with capacity of 1.5 million metric tonnes per annum cement production plant situated in Sokoto State.
“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 32MW captive power plant which will supply the plant’s non-kiln operations,” he added.