The market value of the Cement Company of Northern Nigeria, having gained 110 per cent at the close of trading on December 31, 2018, increased to N254,983,918,740.40 billion shortly after the merger with BUA Group’s Kalambaina Cement Company Limited was approved by the regulators and 13.1 billion shares of expanded were listed on the NSE.
The company’s share price, which opened the year at N9.50, closed at N19.95.
The CCNN on Monday listed 11.887 billion ordinary shares of 50 kobo each on the Daily Official List of the Exchange, raising the cement company’s total issued and fully paid up shares from 1.257 billion ordinary shares of 50 kobo each to 13.143 billion ordinary shares of 50 kobo each.
With this current market value, the CCNN has been lifted to the 12th most capitalised company at the stock market.
CCNN and Kalambaina Cement Company, a wholly-owned subsidiary of BUA Cement Company Limited, had merged to strengthen CCNN as Nigeria’s largest cement company in the core Northern region of the country.
Both CCNN and Kalambaina Cement are based in Sokoto.
The new CCNN now has a two million metric tonne per year combined capacity and will leverage on the energy efficiency of the Kalambaina plant, which uses alternative fuel such as coal, heavy oils and gas, and it is expected to help solve the power problem with limited downtime and further opportunities for growth and expansion.
CCNN and Kalambaina Cement Company have related core investor.
The merger brings the total capacity of BUA’s Cement operations to eight million metric tonnes per annum, following the recent completion of BUA Obu Cement Line 2 in Okpella, Edo State.