The board of directors of the Cement Company of Northern Nigeria (CCNN) Plc, has announced Damnaz Cement Company Limited (Damnaz) as the company’s major shareholder. In its notification to The Nigerian Stock Exchange (NSE) and Securities and Exchange Commission (SEC), CCNN made known that the shareholding structure of the company has been effected.
The shareholders of Damnaz -Abdul Samad Rabiu and BUA International Limited. The duo holds both majority and minority share capital of Damnaz respectively.
It was reported that CCNN proposed to merge with Kalambaina Cement. The merger was expected to see the enlarged company’s cement production at a capacity of 2 million metric tonnes per annum.
CCNN currently own a Sokoto Cement Plant that boasts of 500,000 metric tonnes per annum while BUA owns Kalambaina Cement Plant in Sokoto state with a production capacity of 1.5 million metric tonnes per annum. The companies, through separate court-ordered meetings, was expected to obtain the approval of their respective shareholders.
As a consideration for the proposed merger, the shares of CCNN was expected to be issued and alloted to all shareholders of Kalambaina Cement, a subsidiary of BUA Cement, in exchange for their shares in Kalambaina Cement at an agreed ratio based on CCNN’s 30-day volume weighted average closing price (VWAP) to June 22, 2018 of N25.99 per share.
In its half-year 2018 financial results, CCNN’s revenue surged from N8.5 billion in 2017 to N12.08 billion in 2018. Profit before tax increased to N3.65 billion in 2018 as against N1.37 billion in the comparative period in 2017. Also, profit after tax increased from N1.02 billion in 2017 to N2.60 billion in 2018.
The cement company was incorporated in 1962 and commenced production in 1967, with an initial installed capacity of 100,000 metric tonnes per annum at the Kalambaina plant.
CCNN shares traded at N25.00 on the floor of the NSE as at Friday, October 12, 2018.