Nigerian cement and sugar tycoon Abdulsamad Rabiu is now worth at least $4 billion after merging Cement Company of Nigeria (CCNN), where he was the controlling shareholder, with the Obu Cement company.
Following the delisting of 13,143,500,966 ordinary shares of CCNN from the daily official list of the NSE, BUA now has 33,864,354,060 ordinary shares of 50 kobo each now listed on the exchange.
The merger went through after shareholders of both CCNN and OBU Cement in separate Court-Ordered Meetings approved the process and both companies agreed that CCNN shareholders will receive 1 share in Obu Cement (now BUA Cement Plc) for every 1 share held in CCNN.
The new company, BUA Cement, which was formally listed on the Nigerian Stock Exchange on Thursday, now has a market capitalization of over N1.2 trillion ($3.3 billion). It is the 3rd largest company on the Nigerian Stock Exchange after Dangote Cement and mobile telecoms firm, MTN Nigeria.
With the merger, BUA Cement, is now the second largest producer of cement in Nigeria by volume. Its total output capacity across all its cement affiliates now stands at over eight million metric with factories in Sokoto State, North West Nigeria (2million MY) and Okpella Edo State, South South Nigeria (6million MPTA).
According to documents filed with the Nigerian SEC, Abdulsamad Rabiu owns than 91% of the BUA Cement through his own name and via other holding companies. His stake in BUA Cement alone, is now valued at a little over $3 billion. Apart from his controlling stake in BUA Cement, Rabiu also owns the other companies in the BUA Group such as BUA Sugar – Nigeria’s second largest sugar company which has assets valued at over $700 million; BUA Ports & Terminals Limited; BUA Iron & Steel and BUA Estates; which owns hundreds of residential properties across Nigeria. Outside Nigeria, he also owns a real estate portfolio in the United Kingdom, South Africa and the United States conservatively valued at $100 million.