Dangote Cement Plc, a leading cement manufacturer led by Africa’s richest man Aliko Dangote, has received shareholder approval to buy back up to 10 percent of its outstanding shares for N406 billion ($917 million).
According to a press release issued by the cement company during trading hours today, Dangote Cement shareholders unanimously authorized the company’s management on Tuesday to undertake a share buyback of up to 10 percent of its issued shares, effective from the date of the resolution.
Nearly three weeks ago, Dangote Cement announced plans to repurchase up to 10 percent of its outstanding shares for a total of $917 million (N406 billion).
The shareholders who participated in the voting at the company’s Extraordinary General Meeting in Lagos gave their unanimous approval, with many of them praising the process and describing it as beneficial to all parties involved.
The shareholders approved, among other things, the amendment of the company’s “Memorandum and Articles of Association to reflect the company’s share capital, following the cancellation of the shares acquired by the company, upon completion of the share buyback.”
Dangote Cement is Africa’s largest cement producer, with a 51.55-million-tonne-per-year production capacity spread across ten countries. Dangote owns 86 percent of Dangote Cement through his manufacturing group, Dangote Industries Limited.
The cement behemoth repurchased a total of 126,748,153 shares almost 10 months ago for an average price of N276.89 ($0.667) per share, or 0.74 percent of its issued and fully paid ordinary shares.
The company announced that none of its directors, including Dangote, who owns 86 percent of the cement company, will participate in the share buyback program as it gets ready to repurchase up to 10 percent of its shares.
The price of the cement company’s stock on the Nigerian Exchange has increased from N238.5 ($0.536) to N262.3 ($0.59) since Nov. 21, when it announced plans to repurchase up to 10 percent of its shares. As a result, its market capitalization has surpassed $10 billion.