Dangote Cement announced a share buyback program late last year that intends to repurchase up to 10 percent of outstanding float of the company.
A share re-purchase or buyback, is a decision by a company to buy back its own shares from the marketplace. A company might buy back its shares to boost the value of the stock and to improve the financial statements. Companies tend to repurchase shares when they have cash on hand, and the stock market is on an upswing.
Dangote Cement has 17 billion shares outstanding meaning it could buy back up to 1.7 billion shares if it completes the buyback. At today’s share price of N135.90 that would mean an expenditure of N231 billion.
Group Chief Financial Officer (CFO) for Dangote Cement, Guillaume Moyen provided some update on the buyback in an appearance yesterday in a fact behind the figures broadcast held by the Nigerian Stock Exchange (NSE).
Key Updates Include:
- Dangote Cement announced its share buyback program late last year
- The firm got authorization from the board and shareholders for the program at the end of January.
- Dangote Cement is considering at the moment the opportunity to deploy the program
- The firm will look at the liquidity requirements of the company before deploying the share buyback
- The price of the shares on the NSE will also be considered before the buyback is deployed.