CCNN commences rights issue
July 28th, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
Cement Company of Northern Nigeria (CCNN) last week opened its application list for a N1.6 billion rights issue.
The company is offering about 173 million ordinary shares at N9.00 per share on the basis of 4 shares for every 25 shares held. This is for shareholders whose names are on the register as at March 30, 2007.The offer closes on August 22, 2007.
The purpose of the offer is to finance its power plant through the purchase of three 4 megawatts generating sets. Also, the company would maximize the offer proceeds in the area of equipment purchase that will be used to blend and burn biomass to boost production. Management are of the opinion that the money realised would enhance the growth of the company by reducing operation cost especially in the area of power generation.
The world’s fourth largest supplier, Heidelberg cement (HC), has already indicated interest to inject about N971 million in form of equity into the company. Other key stakeholders that have indicated interest in injecting funds are Nasdal Bap Nigeria Limited (N184 million), Dantata Investment & Security company Limited (N129.5 million) and other Northern states.
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Will you recommend that i buy this shares and when is it on public offer
pos will some of the experts tell me whats going on with dunlop since michelin left nigeria u will think dunlop should be doing better do any body reccomend buy or what