Tunde Omolehin, Sokoto
Shareholders of Cement Company of Northern Nigeria (CCNN) PLC, have agreed to a merger agreement with $350 million Kalambaina Cement Company Limited in Sokoto State.
The merger followed an Extra Ordinary General Meeting of the company held in Sokoto by all CCNN shareholders to that effect.
Kalambaina Cement Plant situated in Sokoto, with an installed capacity of 1.5million 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 combination will provide an opportunity for the enlarged company to meet the needsof its customers.
READ ALSO Why does God suffer so much ingratitude?
“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, while synergies created from 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 is expected to meet 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.