Dangote Cement repurchases 0.24% of its shares at N9.77 bln
By Samuel Bankole
Nigeria’s Dangote Cement on Monday said it has completed the first tranche of its share buy-back programme which resulted in the repurchased of N9.77 billion worth of the company’s shares.
In a regulatory filing on Monday, the cement firm majorly owned Africa’s richest man, Aliko Dangote said the exercise resulted in the repurchased of 40.20 million worth of its share, representing 0.24 percent of the company’s issued and fully paid shares.
The firm said it paid an average price of N243.02 for each of the 40.2 million repurchased during the exercise which was conducted on December 30, 2020.
“Following the conclusion of Tranche I, the total number of residual issued and fully paid outstanding shares of DCP amounts to 17,000,307,404.
“Execution of this Tranche I did not have any material impact on the Company’s financial position.
“The Company will continue to monitor the evolving business environment and market conditions, in making decisions on further tranches of the Share Buy-Back Programme,” it said in the regulatory notice.
Last December, Dangote Cement, which accounts for a fifth of the Nigerian Stock Exchange (NSE) market capitalistaion has announced its plans to commence a buyback of the company’s shares on December 30 to boost shareholder value.
Dangote Cement obtained the approval of shareholders in January to repurchase some of its shares within a year or at an amended time frame for the purpose of increasing the long term value of the stock.
It is Nigeria’s first company to undertake the exercise as previous attempts failed due to suspicion by regulators and investors that the process may be abused.