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…168m shares to be repurchased
Investors should brace for a rally in the stock of Dangote Cement following the announcement of a massive buy-back programme to repurchase 1% of its outstanding shares, which could cost as much as N50.6 billion.
Dangote Cement Plc (DCP) on Friday, announced the commencement of the first tranche of its newly established share buy-back programme, on Monday, 17 July 2023, in which it intends to repurchase up to 168,735,593 fully paid-up ordinary shares of 50 Kobo each, representing 1% of the entire current issued shares.
Dangote Cement closed trading Friday at N300.1 per share, meaning the amount of the buyback could exceed fifty billion.
The shares will be purchased on the open market on the NGX over a 2-day period and close on Tuesday, 18 July 2023, or when the entire Tranche I size has been purchased; whichever is earlier.
Tranche I will be executed under the approval granted by the Company’s shareholders at the Extraordinary General Meeting of DCP which held on 13 December 2022.
This is within the framework provided under Section 186 (c) of the Companies and Allied Matters Act, No. 3 of 2020 (as amended) (“CAMA”) and Rule 398 (3)(xiv) of the Securities and Exchange Commission’s (“SEC”) Rules and Regulations, 2013 (as amended from time to time) and in accordance with Rule 13.18 of the Rulebook of the Nigerian Exchange Limited (“NGX”), 2015.
Based on the aforementioned shareholders’ approval, the number of shares to be repurchased under the Share Buy-Back Programme will not exceed 10% of DCP’s issued capital.
The Programme is being effected in tranches, with Tranche I being executed by the appointed stockbrokers on the Company’s behalf.
The Company through its appointed Stockbrokers, will at its discretion purchase DCP’s shares in the open market over the duration of Tranche I, subject to prevailing market conditions and under the current daily trading rules of the NGX.
DCP would however, not be under any obligation whatsoever to purchase any or all of the DCP shares put on offer over the duration of Tranche I.
The shares being bought back by the Company under the Share Buy-Back Programme will be held as treasury shares, as permissible under CAMA. Execution of this Tranche I is not expected to have any material impact on the Company’s financial position.
Dangote Cement shareholders seeking to participate in Tranche I of the Share Buy-Back Programme are hereby advised to contact their stockbrokers or any other independent professional adviser registered as a capital market operator by the SEC for further guidance on the submission of trades on the NGX’s trading platform.
DCP will provide weekly updates on the progress of Tranche I of the Programme on its website over the duration of this tranche.
Dangote Cement is Africa’s leading cement producer, with operations in over ten (10) African countries, including Nigeria, Cameroon, Congo, Ethiopia, Ghana, Senegal, Sierra Leone, South Africa, Tanzania and Zambia.
The Company generated revenues of N1.62 trillion for the year ended 31 December 2022 (FY 2021: N1.38 trillion) and net profit of N382.31 billion (FY 2021: N364.44 billion). DCP is a public company listed on the Nigerian Exchange Limited.