Trading at the stock market resumed yesterday on a positive note as Cement Company of Northern Nigeria (CCNN) Plc led 17 other price gainers for the day.
Gains by CCNN, Dangote Cement Plc and other bellwethers such as MTN Nigerian Communications Plc ,Nigerian Breweries Plc, GTBank Plc and United Bank for Africa Plc lifted the Nigerian Stock Exchange (NSE) All-Share Index (ASI) by 0.54 per cent to close at 26,456.39. Similarly, market capitalisation added N69.1 billion to close at N12.9 trillion.
Consequently, market year-to-date’s decline eased to 15.8 per cent. The market had recovered last week after five consecutive weeks of decline. Although some market analysts had expressed reservations about the sustainability of the recovery in the new week, the market maintained the growth trajectory yesterday with 18 price gainers and 11 price losers.
CCNN Plc led the gainers with 9.1 per cent to close at N19.10 per share. The cement firm has proposed to merge with Obu Cement Company Plc, a sister company that operates from Okpella, Edo State.
The merger will be effected by way of a Scheme of Arrangement, pursuant to Section 539 of the Companies and Allied Matters Act, 1990 and it will involve the transfer of all CCNN’s assets, liabilities and undertakings including employees, real properties and intellectual property rights to Obu Cement. In consideration for the transfer, CCNN shareholders will receive shares in Obu Cement and the company will be dissolved without being wound up. Obu Cement will remain the surviving entity and will be listed on the NSE.
According to the Chairman of CCNN Alhaji Abdulsamad Rabiu said the decision to merge, is primarily motivated by the board’s goal of ensuring that the company is well positioned to grow and expand in the Nigerian cement industry.
“The merger with Obu Cement will create an entity with increased production capacity. We are of the opinion that the proposed merger will create a platform where significant synergies can be obtained for the benefit of our shareholders, employees, customers, distributors, suppliers and the broader economy. CCNN shareholders will become shareholders of a larger and highly profitable entity, stressing that synergies created as a result of the merger would create additional value for shareholders,” he said.
Meanwhile, Ikeja Hotel Plc led the price losers with 9.2 per cent, trailed by Courtville Business Solutions Plc with 8.7 per cent. Lafarge Cement Plc shed 3.7 per cent, while FBN Holdings Plc lost 3.4 per cent.
