Dangote Cement to buy back 170m shares from shareholders

Dangote Cement Plc says it will repurchase 170 million ordinary shares from shareholders in the second tranche of its share buyback programme.

The shares are worth 1 percent of the company’s issued shares.

In a statement on Wednesday, Edward Imoedemhe, deputy company secretary of Dangote Cement, said the programme will run from January 19 to January 20 or when the entire shares have been repurchased.

A buyback occurs when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors.

On December 31 2020, the company had completed the first tranche of its share buyback programme, repurchasing shares worth N40.20 million at N243 per share, at a total value of N9.8 billion.

The statement said the company has a total value of N17.04 billion fully paid-up ordinary shares of 50 kobo each. 

The cement maker added it would be repurchasing 170 million ordinary shares of 50 kobo each, representing 1% of the company’s issued shares.

According to the company, this includes 40.2 million shares held as treasury shares, following the conclusion of Tranche I of the share buyback programme.

It said the transaction would take place at the open market on the Nigerian Exchange Limited (NGX), subject to prevailing market conditions and under the current daily trading rules of the NGX.

It also appointed Meristem Stockbrokers Limited and Vetiva Securities Limited as stockbrokers for the second tranche of the programme.

“Through its appointed Stockbrokers, the Company will, at its discretion, purchase DCP’s shares in the open market over the duration of Tranche II, subject to prevailing market conditions and under the current daily trading rules of the NGX,” the statement reads.

“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 II. 

“The shares being repurchased by the company under the Share Buy-Back Programme will be held as treasury shares and may subsequently be cancelled. Execution of this Tranche II is not expected to have any material impact on the company’s financial position. 

“Dangote Cement shareholders seeking to participate in Tranche II of the Share Buyback 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 II of the Programme on its website over the duration of this tranche. 

“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.

“Shareholders and investors are advised to exercise caution when dealing in the securities of Dangote Cement until the completion of Tranche II of the Share BuyBack Programme. An announcement will be published upon completion of Tranche II of the Programme.”