The Cement Company of Northern Nigeria Plc (CCNN) has concluded arrangements to shore its financial base by N1.56 billion which would be raised through a rights issue opening Monday, July 16, 2007.
The recapitalisation plan was finalised at the companyÃƒÆ’Ã†â€™Ãƒâ€ Ã¢â‚¬â„¢ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€¦Ã‚Â¡ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€¦Ã‚Â¾ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â¢s completion board meeting held at Transcorp Hilton, Abuja, Thursday, June 28. This is coming on the heel of an earlier approval of the plan by the shareholders at their last extraordinary general meeting.
Announcing the opening of the rights issue, Alf Karlsen, managing director/chief executive, said 173,334,864 ordinary shares of 50 kobo each would be offered to existing shareholders in the ratio of four new shares for every 25 shares held as at March 30, 2007. The offer is coming at N9.00 per share. He explained that this is a discount of 58 per cent of the quoted price of N21.30 per share
He said approvals for the registration and listing of the new shares has already been obtained from the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE), while IBTC Chartered Bank Plc (IBTC) and Sterling Capital Markets Limited are the issuing houses to the issue.
Karlsen disclosed that proceeds of the issue would be used to finance the purchase and installation of three 4-MW (megawatt) heavy fuel generators with auxiliary equipment, as well as the purchase and installation of equipment to store, blend and burn biomass in the cement kiln.
\"These projects should be completed by the end of the second quarter of 2007,\" he added. He revealed that Scancem International ANS, the majority shareholder of CCNN, is providing a bridging loan facility to finance both projects. The facility would be liquidated with proceeds from the net issue.
Sola David-Borha, Executive Director, Corporate and Investment Banking, IBTC Chartered Bank Plc, has commended the management of CCNN for the effort to re-capitalise the company in order to improve profitability.
On his part, Biodun Dabiri, Managing Director/CEO of Sterling Capital urged the shareholders to seize the opportunity of the rights issue to reaffirm their faith in the companyÃƒÆ’Ã†â€™Ãƒâ€ Ã¢â‚¬â„¢ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€¦Ã‚Â¡ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€¦Ã‚Â¾ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â¢s potential for future growth.
The Rights Circular for the Issue, which contains a Provisional Allotment Letter and the Acceptance/Renunciation Form, is already being mailed directly to shareholders.
Established on January 1, 1962, CCNN, which is based in Sokoto, was listed in the cement and concrete product manufacturing sector of the Nigerian Stock Exchange on October 4, 1963.