Shareholders of Cement Co of Northern Nigeria (CCNN) and Obu Cement Co have unanimously approved the merger of the two entities into Obu Cement plc.
This implies that all the assets, liabilities, licences and undertakings of CCNN, including employees, real property and intellectual property right, have been transferred to Obu Cement. Also, the entire issued share capital of CCNN, comprising 13,143,500,966 ordinary shares of 50 kobo each be cancelled and CCNN be dissolved without being wound up, reports The Sun Nigeria. So, following the resolution of the meeting, ordered by court for last Wednesday , Obu Cement would allot an aggregate of 20,720,853,094 ordinary shares to qualifying Obu Cement shareholders in the ratio of 518 reconstructed shares for every one of the Obu Cement share held.
The merger of the two companies will increase the production capacity of the enlarged cement producer to 8Mta. “We expect the proposed merger to provide opportunities for significant cost-savings and improved operational efficiencies by streamlining operations and optimizing use of combined resources,” said CCNN Chairman, Chimaobi Madukwe.
