Moses Emorinken, Abuja
The Cement Company of Northern Nigeria (CCNN) is in the process of seeking final approval from the Securities and Exchange Commission (SEC) on its proposed merger with Obu Cement Plc, as shareholders unanimously voted in favour of the proposed merger to enhance operating and administrative efficiency.
The plebiscite which took place at the Court-Ordered General Meeting of the shareholders of the CCNN had 157 out of 170 accredited shareholders voting in favour of the resolution.
According to the Chairman of the CCNN, Alhaji Abdulsamad Rabiu, “The total number of shares held by shareholders present and who voted was 307,027,755 shares, and voted in favour of the resolution approving the scheme which represents 99.93 per cent. Based on the results of the poll, the motion for the merger of CCNN with Obu Cement was unanimously carried.
“The report of the result of this meeting will be filed with the Securities and Exchange Commission for its final approval. Following the final approval by SEC, a copy of the result will also be submitted to the federal high court.
“The shareholders of the merging entities are well positioned to benefit from the stronger position of the enlarged company due to greater economies of scale and enhanced operating and administrative efficiencies which are expected to accrue from the proposed merger,” he said.
According to the document which contains the benefits of the merger, “The proposed merger will increase the production capacity of the enlarged company to 8 million MTPA. It is anticipated that in addition to meeting the demand from customers in the core regions in the country, the enlarged company would be positioned to distribute its products in new geographical markets, creating the potential for additional shareholder value creation.
“We expect the proposed merger to provide opportunities for significant cost savings and improved operational efficiencies by streamlining operations and optimizing the use of combined resources.
“It will also provide a platform where the enlarged company benefits from economies of scale in procurement, distribution and manufacturing of the products offered to customers”.
Alhaji Rabiu further explained that shareholders of the merging entities will become shareholders of a larger and highly profitable entity, as synergies created as a result of the merger will create additional value for shareholders.
“The Enlarged Company will create a platform for further investment that will have a positive impact on the communities where the operations of the companies are present as well as for the economy as a whole,” he said.
Approved.Received, thank you.Well received, thanks.