Nigeria: MSCI Adds Bua Cement to Frontier Markets Index

14 February 2020

MSCI Inc, a leading provider of research-based indexes and analytics, has added BUA Cement Plc to the MSCI Frontier Markets Index. This was disclosed in the results of the February 2020 Quarterly Index review for the MSCI Equity Indexes. The MSCI Frontier Markets Index captures large and mid cap representation across 28 Frontier Markets (FM) countries including Nigeria. The index has 92 constituents.

The index compiles the market capitalisation of all companies that are listed in these countries' stock markets. It is considered a good measurement of the stock performance of emerging markets and represents 13 per cent of the world's total market capitalisation.

Market analysts said the inclusion of BUA Cement Plc is a positive development for the cement manufacturing firm.

BUA Cement had its 33.864 billion ordinary shares of 50 kobo each of the company at N35 per share on the Nigerian Stock Exchange last month.

The listing of West Africa's second largest cement company, brought to conclusion, the merger between the BUA-owned cement entities, Cement Company of Northern Nigeria and Obu Cement company.

According to the Managing Director of the company, Yusuf Binji, "BUA Cement is poised to add even more value to the Nigerian economy as a whole through this listing. Over the past few years, we have significantly ramped up capacity and currently boast the most efficient and integrated operations in the Nigerian Cement Industry. This new publicly listed company will continue to deliver exceptional value to all stakeholders in the foreseeable future."

Binji said the merger provided a compelling opportunity to capture significant synergies and create value for the benefit of the shareholders of both companies in the form of stronger competitive position of the enlarged company, economies of scale, enhanced operations and administrative efficiencies that will accrue.

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