The combined business entity known as BUA Cement – merged
between Obu Cement and Cement Company Of Northern Nigeria (CCNN)will be listed
on the Nigerian Stock Exchange today, Thursday, January 9, 2020.
The move which consolidates the cement holdings of BUA group in
Nigeria is part of the group’s vision of unlocking ‘’the opportunities inherent
in the business space in Africa for Africans by Africans through BUA’s
strategic investments in key industries within Nigeria and across the
continent’’.
.The listing of the combined business entity known as BUA Cement
is one of the high points of the overwhelming votes by shareholders of CCNN and
Obu Cement, at their general meetings, in favor of a merger on December 4,
2019. This was followed by approvals by the courts and regulators.
Here are a few highlights from the merger which can also be
extracted from the Scheme of Merger document found here – http://buacement.info or on the Nigerian
Stock Exchange Website
- Merger Deal Size of
about NGN1,185,252,392,100 (1.18trillion Naira) or USD3.29billion*
(*USD1/NGN360)
- Current volume of shares
for total combined entity (BUA cement) is 33,864,354,060 total entity
shares i.e. 13,143,500,966 CCNN shares + 20,720,853,094 shares of BUA
OBU Cement Shares
- Exchange ratio is 1:1
representing the number of CCNN ordinary shares to be exchanged for OBU shares
- Date of transaction voting
was 4th of December, 2019 with 99.93% of minority shareholders voting in favor
of the merger. Listing date scheduled for 9th of Jan, 2020.
- The new entity, BUA
Cement, will be the second largest producer of cement in Nigeria by Volume with
factories in Sokoto State, NorthEast Nigeria (2million mtpa) and Okpella Edo
State, South South Nigeria (6million mtpa). A new 3million mtpa plant currently
being constructed is scheduled to be operational in 2020 in Sokoto State.
- BUA Cement also has the
benefit of market leadership positions in its key regional markets of the North
West, South South and SouthEast Nigeria due to its location and proximity to
those markets . It also has a huge export market in Western Africa.