BUA cement company was on Thursday formally listed on the Nigerian Stock Exchange with a market capitalization of over N1.2 trillion.
The listing brings to conclusion the merger process between the BUA-owned cement entities, Cement Company of Northern Nigeria and Obu Cement company.
With the merger, BUA cement’s total output capacity across all its cement affiliates now stands at over eight million metric tons per annum (MTPA).
The company said the latest capacity does not include an additional three million metric tonnes càpaçity production plant scheduled to come on stream in the second half of this year.
The Managing Director of the new entity, Yusuf Binji, disclosed this at the closing gong ceremony on the floor of the stock market to commemorate the listing.
Mr Binji said BUA Cement is poised to add even more value to the Nigerian economy as a whole through the listing exercise.
“Over the past few years, we have significantly ramped up capacity and currently boast of the most efficient and integrated operations in the Nigerian cement industry,” he sàid.
This new publicly listed company, he sàid, will continue to deliver exceptional value to all stakeholders in the foreseeable future.
In the statement, BUA Cement further sàid the proposed merger will provide a compelling opportunity to capture significant synergies and create value for the benefit of the shareholders of both companies.
The benefits, he sàid, will come in the form of stronger competitive position of the enlarged company, economies of scale, enhanced operations and administrative efficiencies that will accrue.
The CEO of the Nigerian Stock Exchange, Oscar Onyema, applauded the founder of BUA Group and Chairman of BUA Cement, AbdulSamad Rabiu, for bringing BUAs expanded cement business to the Nigerian Stock Exchange.
He described the listing of the company in the NSE as a show of confidence in the value the NSE offers.
With this listing, BUA Cement becomes the third most capitalized stock on the Nigerian Stock Exchange and joins an exclusive trillion Naira club on the NSE.
The exchange rates ratio is 1:1 representing the number of CCNN ordinary shares to be exchanged for OBU shares.
The date of transaction voting was December 4, 2019 with 99.93 per cent of minority shareholders voting in favour of the merger. Listing date was Jan 9, 2020.
The new entity, BUA Cement, will be the second largest producer of cement in Nigeria by volume, with factories in Sokoto State, North West Nigeria (2million MY) and Okpella Edo State, South South Nigeria (6million MPTA).
A new 3million MTPA capacity 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 South East Nigeria due to its location and proximity to those markets. It also has a huge export market in Western Africa.