Regulators approve CCNN’s merger with Kalambiana

CCNN

Regulators approve CCNN’s merger with Kalambiana

By Emmanuel Abara Benson -October 16, 2018

Nigeria’s capital market regulators – the Nigerian Stock Exchange and the Securities and Exchange Commission – have given approval to the proposed merger between the Cement Company of Northern Nigeria (CCNN) and Kalambiana Cement Company Limited.

CCNN’s Company Secretary, Mr Ahmed Aliyu, disclosed this recently via a statement. According to him, CCNN will, under the arrangement, take over control of all assets, licenses, undertakings, and liabilities belonging to Kalambiana. Note that these include landed properties, intellectual property, employees, etc. This will, however, take effect once the merger process is finalised.

Kalambiana Cement shareholders to get consideration

Meanwhile, the shareholders of Kalambiana Cement Company Limited will be considered for new ordinary shares under an arrangement that will see every 100,000 Kalambiana Cement shares exchanged at a ratio of 19,811,273.

More details of this arrangement are contained in a merger document that will be shared among shareholders of both companies at a yet-to-be-scheduled court-ordered meeting that is anticipated from the Federal High Court.

In the meantime, both companies have intimated their respective shareholders of the development and will be seeking their approval at the anticipated court-ordered meetings.

“The respective board of directors of CCNN and Kalambaina Cement recommend the proposed merger to shareholders and will be seeking their support and approval at the respective court-ordered meetings.

“The completion of the proposed merger is subject to the approval of the respective shareholders of the CCNN and Kalambaina Cement and the final regulatory approvals from SEC, the NSE, Federal Inland Revenue Service, as well as the sanction by the FHC.” -Aliyu

Recall that the Cement Company of Northern Nigeria (CCNN) announced the proposed merger with Kalambiana Cement earlier in June with hopes of increasing the company’s production capacity and market share.

The company was incorporated in 1962 and became listed on the Nigerian Stock Exchange in 1993. Its shares are currently trading at N25.

Investors are still playing defensive

16 October 2018

The start of this trading week can best be characterized as a confused and cautious one for investors. Asian equity markets fell on Monday and continued to be dragged lower on Tuesday, despite at a slower pace. European stocks recovered slightly but appetite to risk remained limited as a cautious mood continued to dominate U.S. markets flipping between gains and losses throughout most of Monday’s session to end the day in red as Technology sell-offs dominated the overnight trading session.

There still seems to be lot of uncertainty in global financial markets after last week’s steep selling. The S&P 500 closed below its 200-days moving average on Monday, a signal that won’t be liked by trend-following investors. A failure to return above this average today may encourage further bears to join the crowd. 

Big U.S. banks have delivered better than expected results for Q3. Bank of America, Citi Group, and JP Morgan Chase all managed to rally on EPS. However, all three banks are in negative territory year-to-date, not even the higher and steeper yield curve is helping them, and this should be considered a warning sign. Despite the risk off mode, U.S. Treasury yields remained close to their seven-years high. 

Treasuries’ next move from here will be very important, as it’s becoming more evident that valuations are becoming a major concern. Higher interest rates mean higher required return on equity, so valuations either need to drop further from current levels or earnings should be robust enough to encourage investors to keep taking risk. 

Investors are also struggling with the ongoing U.S.-China trade war, Brexit talks, Italy’s budget clash with Brussels, EM slow down, and the most recent geopolitical tensions between Saudi Arabia and the U.S. However, given the limited reaction in oil prices and the Saudi bond market, investors seem to believe the Saudi-U.S. political conflict will be sorted without incurring further damage to an already struggling global economy.

Source: Hussein Sayed, Chief Market Strategist at FXTM

Reporting for EasyKobo on Tuesday ,16 October 2018 in Lagos, Nigeria

Corporate Actions: 6 red cards and an exit from sugarland

Corporate actions are decisions taken by companies’ boards of directors or management teams, that could have an impact on the firms themselves or shareholders.

Examples of corporate actions include the payment of dividends, closing of shareholders’ registers, announcing qualification dates and Annual General Meeting (AGM) dates.

Here is a review of corporate actions that took place last week and those scheduled for this week.

Corporate Actions that took place last week

LASACO Assurance Plc

LASACO Assurance Plc held an Extraordinary General Meeting (EGM) on the 10th of October. Shareholders approved an increase in the company’s share capital.

An exit from Sugarland

Dangote Sugar Refinery Plc announced the resignation of its Group Managing Director, Abdullahi Sule. Few weeks ago, Nairametrics had reported that Sule might step down following his clinching the APC gubernatorial ticket for Nassarawa State.

Six red cards

The Nigerian Stock Exchange (NSE) placed the shares of DN Tyre & Rubber Plc, FTN Cocoa Processors, International Energy Insurance Plc, Thomas Wyatt Nigeria Plc, Union Dicon Salt Plc and Unic Diversified Holdings Plc on suspension.

The companies were suspended for failure to submit their results as at when required. Union Dicon and Thomas Wyatt have since responded with the release of most recent results.

A N10 billion raise

Eterna Oil Plc this week announced the proposed issuance of a N10 Billion 270 – day Commercial Paper (CP). Funds raised in the CP will be used for working capital and general corporate purposes.

Corporate Actions taking place this week

PZ Cussons Nigeria and Royal Exchange Plc will be holding their Annual General Meetings (AGMs) on the 18th of October 2018.

A week full of board meetings

RT Briscoe, Transcorp Hotels Plc will be holding their board meetings on October 16, 2018.

Guaranty Trust Bank and Royal Exchange Plc will be holding board meetings on October 17, 2018.

Diamond Bank and Africa Prudential Plc will hold board meetings on October 18 2018.

Chemical and Allied Products Plc and Dangote Cement Plc will hold their board meetings on October 19 2018.

Main agenda is to consider Q3 2018 results.

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