The Nigerian Stock Exchange, NSE, has placed the shares of Cement Company of Northern Nigeria (CCNN) on full suspension ahead of its merger with Obu Cement. The merger with Obu Cement, both subsidiaries of Bua Group, would create Nigeria's second largest cement producer.
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The suspension, according to the Exchange in a notice signed by Godstime Iwenekhai, Head, Listings Regulation Department, NSE, became imperative to prevent trading in the shares of the company beyond the Effective Date (the date the Certified True Copy (CTC) of the Court Sanction would be registered with the Corporate Affairs Commission (CAC) with regards to the Scheme of merger between the companies.
The move, according to the company, is part of its bid to deepen the Nigerian capital market and enhance the growth of the cement industry.
"With the consolidation and addition of the Sokoto Kalambaina II plant, this will bring BUA Cement's total installed capacity across all its cement holdings to 11 million metric tonnes per annum (MTPA)," said Alhaji Abdulsamad Rabiu, Chairman/Founder, BUA Group.
He stated that the consolidation would mark the culmination of the first phase of the BUA mid-term strategic plan for its cement businesses, which currently include four cement plants spread across Obu Cement Company and the Cement Company of Northern Nigeria.