Today, Thursday 7th January 2020, will mark a profound date in BUA Cement’s mid-term cement growth strategy, as it would see the final consolidation of its Cement holdings in Nigeria (Obu Cement & CCNN – Cement Company of Northern Nigeria) and the listing of the new combined entity – BUA CEMENT, on the Nigerian Stock Exchange.
This was disclosed in a public statement released to The Herald by the group head, Corporate Communications, O’tega Ogra, on Wednesday, January 8. According to the statement, the listing of BUA Cement is in line with the Group’s vision to unlock opportunities inherent in the business space in Africa for Africans by Africans through BUA’s strategic investments in key industries within Nigeria and across the continent.
“If you recall, on December 4, 2019, shareholders of CCNN and Obu Cement overwhelmingly voted in favour of a business merger at their respective General Meetings. This was followed by relevant approvals by the courts and regulators.”
He further listed a few highlights from the merger which can also be extracted from the Scheme of Merger document found here – http://buacement.info or on the Nigerian Stock Exchange Website
– Merger Deal Size of about NGN1,185,252,392,100 (1.18trillion Naira) or USD3.29billion* (*USD1/NGN360)
– Current volume of shares for total combined entity (BUA cement) is 33,864,354,060 total entity shares i.e. 13,143,500,966 CCNN shares + 20,720,853,094 shares of BUA OBU Cement Shares
– Exchange ratio is 1:1 representing the number of CCNN ordinary shares to be exchanged for OBU shares
– Date of transaction voting was 4th of December, 2019 with 99.93% of minority shareholders voting in favour of the merger. Listing date scheduled for 9th of Jan, 2020.
– The new entity, BUA Cement, will be the second-largest producer of cement in Nigeria by Volume with factories in Sokoto State, NorthEast Nigeria (2million mtpa) and Okpella Edo State, South-South Nigeria (6million mtpa). A new 3million mtpa plant currently being constructed is scheduled to be operational in 2020 in Sokoto State.
– BUA Cement also has the benefit of market leadership positions in its key regional markets of the North West, South-South and SouthEast Nigeria due to its location and proximity to those markets. It also has a huge export market in Western Africa.