Cement Company of Northern Nigeria Plc and Obu Cement recently merged to become BUA Cement.
BUA Cement Plc on Thursday listed its shares on the Nigerian Stock Exchange, following the merger of Cement Company of Northern Nigeria Plc and Obu Cement Company Limited.
The company listed 33.86 billion ordinary shares of 50 kobo each at N35 per share, thereby adding N1.18tn to the total market capitalisation of the Exchange.
The Managing Director/Chief Executive Officer, BUA Cement Plc, Yusuf Binji, said it was a major fulfilment for the group to have its shares listed after a merger of two companies that controlled significant markets in Southern and Northern parts of the country.
He explained that while the CCNN was the listed company before now, its merger with Obu Cement gave birth to BUA Cement Plc, an enlarged firm with a total installed capacity of eight metric tonnes per annum.
Binji said, “With the listing, shareholders should expect better returns because the company will be one of the best dividend paying companies.
“Our installed capacity will be increased to 11mtpa. In addition to meeting the demand from customers in our core regions in the country, the enlarged company will be positioned to distribute products in new geographical markets, creating the potential for additional shareholder value creation.
He stated that the merger of the two companies would provide opportunities for significant cost-saving and improved operational efficiencies by streamlining operations and optimising the use of combined resources.