Shareholders of Cement Company of Northern Nigeria (CCNN) and Obu Cement Company (a subsidiary of BUA Cement), in Okpella, Edo State have unanimously voted in favour of merging the two companies. The shareholders, who gave the approval through an electronic voting at a Court-Ordered Annual General Meeting in Abuja yesterday, were monitored by the representatives of Nigerian Security Exchange, Corporate Affairs Commission (CAC) and Security Exchange Commission (SEC). The meeting, presided over by the CCNN Managing Director, Engr. Yusuf Binji had shares voting of 3,270,355 in favour, representing 99.3% of all the total shares. Speaking during the meeting, Engr Binji disclosed that the decision to pursue the merger was primarily motivated by the Board’s goal of ensuring that the company was well positioned to grow and expand in the Nigerian cement industry.
He, however, listed five main benefits of the merger to include increased capacity to service new and existing markets, operational efficiencies, economies of scales, shareholder value creation and communities and economy.
Responding, the shareholders promised to support MD to grow the newly merged establishment.
It would be recalled that the Cement Company of Northern Nigeria Plc and Kalambaina Cement Company Limited earlier got a legal and shareholder approval to merge.