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.