The Nation Newspaper

Tag: merge

  • CCNN to merge with BUA Cement

    Cement Company of Northern Nigeria (CCNN) Plc and Kalambaina Cement Company- a wholly-owned subsidiary of BUA Cement Company Limited have entered into agreement to merge their businesses in a business combination that will produce North-West Nigeria’s largest cement company.

    Both CCNN and Kalambaina Cement are based in Sokoto. CCNN has a 500,000 metric tonnes per annum cement plant while Kalambaina Cement has a 1.5 million metric tonnes per annum plant, making a combined capacity of 2.0 million metric tonnes per annum.

    In a regulatory filing at the Nigerian Stock Exchange (NSE) yesterday, directors of CCNN and Kalambaina Cement said they have reached preliminary agreement on the merger, subject to approval by shareholders and capital market regulators. Damnaz Cement Company, a subsidiary of BUA International Limited is a majority shareholder in CCNN.

    Managing Director, Cement Company of Northern Nigeria (CCNN) Plc, Alhaji Ibrahim Aminu said that the proposed merger will position CCNN for better competitiveness within its home market and also enable it utilize the more modern plant and equipment of the Kalambaina Cement to boost its market penetration and export potential.

    According to him, the proposed merger provides a compelling opportunity to capture significant synergies and create value for the benefit of the shareholders of both companies in the form of stronger competitive position of the enlarged company, economies of scale, enhanced operations and administrative efficiencies which are expected to accrue.

    “Over the years, we have always delivered exceptional value to all stakeholders and this proposed merger is in continuation of that. We have consistently outperformed the industry in key metrics such as capacity utilization but growth has been hampered over the years due to limited expansion and lack of alternative fuel sources,” Aminu said.

    He noted that Kalambaina Cement plant that uses alternative fuel such as coal, heavy oils and gas would help to solve the power problem with limited downtime and further opportunities for growth and expansion.

    According to proposal, shares of CCNN will be issued and allotted to all shareholders of Kalambaina Cement in exchange for their shares in Kalambaina Cement at an agreed ratio based on CCNN’s 30-day volume weighted average closing price by June 22, 2018 of N25.99 per share.

    A total of 19,811,372 ordinary shares of CCNN will be issued in exchange for 100,000 shares of Kalambaina Cement.

    The business combination is also expected to put BUA Cement businesses in a stronger position to compete effectively and also explore export opportunities in neighboring countries.

    CCNN has shown strong performance in recent period. Key extracts of the interim report and accounts of CCNN for the three-month period ended March 31, 2018showed that sales rose by 24 per cent while profit before and after tax doubled by 119.7 per cent and 110.7 per cent respectively. Total turnover rose from N4.35 billion in first quarter 2017 to N5.39 billion in first quarter 2018. Gross profit grew by 39.7 per cent to N2.26 billion in first quarter 2018 compared with N1.63 billion in corresponding period of 2017. Profit before tax also doubled from N684.98 million to N1.50 billion while profit after tax jumped to N1.08 billion in first quarter 2018 as against N513.74 million in first quarter 2017. Earnings per share thus increased from 41 kobo in first quarter 2017 to 86 kobo in first quarter 2018.

    The first quarter performance placed CCNN on course to consolidate its impressive performance in recent period. The board of directors of the cement company recently announced that it has recommended payment N1.57 billion to shareholders as cash dividend for the 2017 business year  after full-year profit jumped by 157 per cent. A breakdown of the dividend recommendation indicated that shareholders will receive a dividend per share of N1.25 for the 2017 business year. CCNN did not pay dividend for the 2016 business year.

    Also, key extracts of the audited report and accounts of CCNN for the year ended December 31, 2017 showed significant growths in sales and profitability. Turnover rose by 39 per cent from N14.09 billion in 2016 to N19.59 billion in 2017. Gross profit nearly doubled from N4.94 billion in 2016 to N7.61 billion in 2017, representing an increase of 94 per cent.

    Profit before tax jumped by 141 per cent from N1.74 billion in 2016 to N4.20 billion in 2017. After taxes, net profit also leapt by 157 per cent to N3.22 billion in 2017 as against N1.25 billion in 2016. Earnings per share thus improved correspondingly from N1 in 2016 to N2.57 in 2017.

    The balance sheet of the company also improved as total assets grew by 23 per cent from N20.03 billion in 2016 to N24.65 billion in 2017. Shareholders’ fund also increased from N11.49 billion to N14.41 billion, representing an increase of 25 per cent.

    The underlying fundamentals of the company also improved considerably during the year, showing that the positive overall performance was driven by improvement in the operations of the company. Gross profit margin improved from 28 per cent in 2016 to 39 per cent in 2017. Net profit margin also doubled from 9.0 per cent to 16 per cent. Return on capital employed jumped from 11 per cent in 2016 to 22 per cent in 2017.

     

     

  • Benue to merge BSU, Agric college

    Governor Samuel Ortom has announced the Benue State government’s plans to merge the Akperan Orshi College of Agriculture Yandev and the Benue State University.

    He made the disclosure during a courtesy call on the Executive Secretary and management of the Tertiary Education Trust Fund (TETFUND) in Abuja yesterday.

    The governor said that with the briefing he received from the Executive Secretary, Professor Suleiman Elias Bogoro, he would fast-track the merger so that the institution could benefit from TETFUND’s intervention.

    The Secretary had stated that the organsation could not grant the governor’s request for intervention at the college unless it had affiliation with the University of Agriculture, Makurdi or the state university.

    Governor Ortom also visited the Director-General of the Federal Radio Corporation of Nigeria, FRCN, Dr Ladan Salihu, and expressed his willingness to host the North Central Office of the corporation in Makurdi and also partner with the organisation in mutually beneficial areas.

    Dr. Salihu who conducted the governor round facilities commended his amnesty program and recommended it to other state governments. He promised to collaborate with the state in capacity building and upgrading of facilities.

    Governor Ortom also visited the Executive Vice-Chairman of the Nigerian Communications Commission, Professor Umar Garba Danbatta, and requested assistance in the Information and Communication Technology sector.

  • Ekiti APC groups merge

    Ekiti APC groups merge

    Two interest groups in the Ekiti State All Progressives Congress (APC), the G-35 and Ekiti Restoration Group (ERG) have merged in a bid to ensure victory for the party in 2018.

    A former member of the House of Representatives and ERG chieftain, Bamidele Faparusi, said the action was part of moves to sack the Peoples Democratic Party (PDP).

    ERG was formed by APC House of Representatives members of the Seventh Assembly. G-35 comprises notable politicians like former council chairman Paul Abegunde, Ayodele Esan, Bunmi Akinniyi, Benson Omotayo, Oladele Adeniyi, among others.

    Faparusi, who represented Ekiti South between 2011 and 2015, said the merger was to foster unity and ensure proper realignment of forces and interests in the party.

    According to him, no efforts would be spared to make all interest groups in the party come together to ensure that the APC “inflict a crushing defeat on the PDP” which it maintains has failed Ekiti people with its performance.

    Faparusi said: “The APC does not only owe it a duty to present a credible opposition to the PDP administration, we should also form a united front to be able to bounce to reckoning and defeat the PDP in 2018.

    “We are working hard to ensure unity in our party and in doing this, no group will be sidelined. We are ready to bring everybody on board.”

    Esan said:  “There is nothing to fight about now but to rejoice that we won the central. Since we are able to achieve that tall feat, I don’t think Ekiti will be a herculean task.”

    “We will help the party by embracing party supremacy in all our dealings.

    We have to submit ourselves to the whims of the party because without it there is absolutely nothing we can do as individuals.”

  • Travel Investment Company, others merge

    •Firm ‘made N36b  in 2014’

    Travel Investment Company (TICO) has unveiled the first consolidation of the four   largest travel agencies in Nigeria .

    A fallout of the consolidation showed that the company  generated over N36 billion revenue, amounting to about 20 per cent of the travel industry revenue last year.

    The merging agencies include: Touchdown Travels, Quantum Travels, Finchglow Travels and Dees Travels.

    The group Chairman, Mr Michael Otubu, said the agencies, merger would strengthen their position  in the travel industry as well as raise service delivery.

    He said the company was incorporated in 2013 as a pioneer consolidation of travel agencies with a mandate to bring changes in travel business.

    TICO, he said, would ensure dynamism in the industry, and focus on offering large volume  of transactions and quality services to travellers at the best rates

    Otubu said: “Travel Investment Company, through its principal agencies, is poised to offer meaningful  travel experience and customer service to travellers. This translates to the raising of professional standards of the Nigerian travel industry to international practice benchmark and wide service offerings to clients. This positioning is strengthened by the 50 years of combined industry experience of the principal agencies.

    “In 2014, TICO generated a combined revenue of over N36 billion that amounts to approximately 20 per cent of the industry revenue. This performance quotient speaks as much of the market potentials in the travel industry as in the power of this consortium’s standing in the industry.

    “In the past 16 months, TICO has become the most engaging and pervasive partner for all major airlines in Nigeria. A lot of our airline partners, having sensed the opportunity, have moved quickly to embrace our services and expanded the scope of our partnership accord-ingly.”

    TICO’s  chief executive officer Mrs Irene Uti- Egbeogu said that the consolidation was conceived when the travel industry was facing challenges.

    She said: “These shake ups quickly started fading with the footsteps of technology experts who began to bring their strong technological and industry experience to bear  on competent travel consultancy.”

     

  • Fed Govt finalises plan to merge aviation agencies

    Despite the controversy that greeted the proposed merger of three aviation agencies – the Nigerian Civil Aviation Authority (NCAA), the Nigerian Meteorological Agency (NIMET) and the Nigerian Airspace Management Agency (NAMA) – into the Federal Civil Aviation Authority (FCAA), the Federal Government has concluded plans to implement the report of the Steve Oronsaye Committee, which proposed the merger.

    Investigation at the weekend revealed that the Office of the Secretary to the Government of the Federation (SGF), in a letter to the Permanent Secretary of the Ministry of Aviation, dated July 14, 2014, requested the affected agencies to send a progress report on or before Monday, July 21.

    Aviation unions and industry experts, in May, protested against the planned merger.

    They said the arrangement is against international regulations, which prescribe that aviation services provision should be separated from regulation.

    They argued that vesting services provision and regulation in one body could compromise air safety.

    The Federal Government, in May, accepted the recommendations of the Steve Oronsaye Committee.

    The committee said the enabling laws of the agencies be amended to accommodate the merger.

    The letter, by the Aviation Ministry’s Permanent Secretary, Mohammed Abubakar, to SGF Senator Anyim Pius Anyim and the ministry, said the submission of the report was to enable the government merge the agencies.

    The letter said upon the receipt of the committee’s report, the government directed each ministry to set up Ministerial Technical Committees (MTCs) for the implementation of the White Paper on the restructuring and rationalisation of Federal Government agencies, corporations and commissions.

    The letter adds: “As specified in the circular, each technical committee is to undertake the detailed day-to-day implementation of the decisions in the White Paper, as may be applicable to the agencies being supervised by your ministry/office. It is, therefore, expected that your technical committee has proceeded with the implementation of the decisions of the White Paper as they affect the agencies under your ministry.

    “Accordingly, I am to inform you that the Secretary to the Government if the Federation/Chairman of the implementation committee of the White Paper on restructuring and rationalisation of Federal Government agencies, corporations and commissions has directed that each ministerial technical committees should submit a progress report on its assignment to the undersigned on or before Monday, July 21, 2014…”

  • ACN, CPC, ANPP merge as one party

    ACN, CPC, ANPP merge as one party

    The Action Congress of Nigeria (ACN), the Congress for Progressive Change (CPC) and the All Nigeria Peoples Party (ANPP) have dissolved into the All Progressives Congress (APC).

    The Chairman of the 89-member Merger Committee of the parties, Chief Tom Ikimi, told reporters in Abuja on Wednesday that the merger was in keeping with the conditions for registration by the Independent National Electoral Commission (INEC).

    He said: “I am pleased to report that we have made appreciable progress. The three parties have fused into one, adopted one symbol, accepted one slogan, a common manifesto and a single constitution.”

    According to him, the leadership of the merger parties will now pursue the registration of APC with INEC so that the new party will be able to field candidates for the next general elections.

    Ikimi said the party’s leaders would iron out the issue of interim national officers, as demanded by INEC.

    He expressed satisfaction with his committee’s assignment since its inauguration on February 6.

    According to him, the new political association will provide Nigerians with an alternative platform of change if registered.

    He said the committee, which included factions of All Progressives Grand Alliance (APGA) and the Democratic People’s Party (DPP), met consistently to actualise the dream.

    “The merging parties have held successful conventions in Lagos, Abuja and Guasu. They approved and accepted the name APC, and now these three parties have merged.

    “We believe that we have completed the assignment that brought us here,” Ikimi said.

  • ACN, CPC to merge in June, says Buhari

    ACN, CPC to merge in June, says Buhari

    The much anticipated merger of leading opposition parties, the Congress for Progressive Change (CPC) and the Action Congress of Nigeria (ACN), will be finalised in June, General Muhammadu Buhari has said.

    Gen. Buhari, who is the National Leader of the CPC, spoke in Abuja yesterday during the inauguration of the 18-man committee on the merger.

    The committee is chaired by the former Deputy Governor of Bauchi State , Alhaji Garba Gadi.

    The former head of state, blaming the nation’s woes on inept leadership, said the only way to stave off the drift is for the opposition parties to unite with the sole aim of winning the 2015 general elections.

    Noting that the merger has become imperative, Gen. Buhari said unity of the people, unity of political parties and unity of the opposition was no longer an option.

    He disclosed that the first phase of the merger – and not alliance – is between CPC and the Action Congress of Nigeria (ACN) . The All Nigerian Peoples Party (ANPP) and others will join later.

    What Nigerians want, Gen. Buhari said, is a merger of opposition parties to dislodge the ruling Peoples Democratic Party (PDP) in the 2015 presidential election.

    Asked if he will still run, he said he may contest, if the new party offers him the ticket.

    “In 2010, we went very far with ACN. Now, we are picking priority. We are going to aggressively go through our terms of reference with the ACN before we meet with another party,” Gen. Buhari said, adding: “I have said it and it is on record that I will not present myself again for election. But after that, members of my party, groups and individuals came to me and said I do not belong to myself, that I belong to them. I told the party that if they approach me, I will consider contesting election. This is the position of things. I have mentioned this several times. If we have the merger, it will be much easier for me and the new party then can decide wether it will offer me the presidential ticket for 2015.”

    Gen. Buhari said after a successful merger of ACN and CPC, the new party may be presented to Nigerians by June.

    He advised the committee members not to compromise their stand on the merger because Nigerians want a change for development.

    His words: “As we all sadly know, the nation is, once again, at a crossroads, stumbling from one disaster to another, simply because its leaders lack unity of purpose and even if they sometimes look like coming together, this has never been marshalled into a coherent, irresistible force by the opposition. But the opposition itself has not been able to get its act together because it is not united. In Nigeria today, therefore, unity of the people, unity of political parties and unity of the opposition is no longer an option. It has become a national imperative.

    “And, thankfully, everyone is finally coming round to accept the necessity for it. Right now, so strong is the belief in unity as seen in the merger of our two parties that the sentiments expressed on both sides sound as if the two parties may merge on their own even before their representatives reach the roundtable. The sentiment today is for a full merger between ACN and CPC, not an alliance or an electoral understanding or anything of the sort.”

    On the task before the committee members, which he described as huge, Gen. Buhari said: “What Nigerians want is merger and that is what you are going to negotiate and bring home to them. There is already in existence an unexecuted understanding between the CPC and the ACN for the creation of a new party, with a brand new logo and a new flag already designed and all other paraphernalia of a political party put in place.

    “At the risk of sounding overly too optimistic, I may suggest that you should be able to finish your work in six weeks, at the end of which the CPC and ACN should be in a position to sign a declaration of intent to fuse their parties into one.

    “After signing the declaration, it should not take more than another six weeks for the parties to pursue the matter within their own constitutional context to ensure that the issue is legitimated through the proper procedures and progresses of its own organs. It is not impossible that the new party is presented to Nigeria by the middle of this year.”

    Gen. Buhari vowed that the proposed party would begin to plan the creation of a new security architecture for the country and, possibly, for the entire sub-region and the restoration “of traditional intelligent gathering techniques to shore up a police force that has so obviously failed.

    “We do not have money and we are shunned by most of those who do. We do not have a police force and our supporters are victims of those who do. We do not have the government on our side and we are always short changed by it as it misapplies its federal might not to conduct credible elections, but to rig us out of our mandate. The ones we have on our side are God and the people and those are sufficient for us,” Buhari added.