Dangote Cement Hits N6.145trn over Shares Repurchase
Dangote Cement Plc gained 9.27% Tuesday after the company announced a decision to repurchase its own shares from shareholders, thus, driving buying interest on the floor of the Nigerian Exchange. Shareholders’ participation in the company’s share repurchase pushed the market price to N360.7, up by N30.6 in a day.
At the end of the trading session, the market priced Dangote Cement at N6.145 trillion, ranking ahead of MTN Nigeria after a long time when it gave up its position as the most valued brand in the local bourse.
MarketForces Africa reported that Dangote Cement told the Nigerian Exchange the commencement of the first tranche of its newly established share buy-back programme last week.
The cement giant has stem share price volatility with previous repurchase of its own shares, and it has mainly been flattish over a period, ranking third among the stock market movers.
The ongoing rally on the stock suggests that shareholders are participating in Tranche I of the Share Buy-Back Programme
In its regulatory filing, the company said the tranche I will be executed under the approval of the Company’s shareholders at the Extraordinary General Meeting of Dangote Cement Plc held on 13 December 2022.
The cement company told the Exchange that the number of shares to be repurchased under the Share Buy-Back Programme will not exceed 10% of Dangote Cement Plc’s issued capital.
The Programme is being effected in tranches, with Tranche I being executed by the appointed stockbrokers on the Company’s behalf, according to a statement released to the regulator.
The programme, according to the company, excludes 166,948,153 shares held as treasury shares, following the conclusion of Tranche I and II of the Company’s previous Share Buyback Programme.
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. Dangote Cement said execution of this Tranche I is not expected to have any material impact on the Company’s financial position.
