Dangote Cement Plc, Africa’s largest cement producer led by Nigeria’s richest man Aliko Dangote, has announced the commencement of its share buyback program following approval from shareholders during the Extraordinary General Meeting held in December.
The company aims to buy back shares worth N50.6 billion ($65.8 million), representing one percent of its current issued shares.
The duration of the first tranche of the share buyback program is scheduled to be completed within two trading days, commencing from Mon., July 17, 2023, to Tues., July 18, 2023, or until the entire tranche size has been purchased, whichever occurs earlier.
During this tranche, Dangote Cement plans to repurchase up to 168,735,593 fully paid-up ordinary shares of 50 Kobo each. This quantity represents one percent of the company’s present issued shares, which currently stand at 16,873,559,251 shares.
The share repurchases will be conducted through open market transactions on the NGX. Dangote Cement, in collaboration with its appointed stockbrokers, will exercise discretion in purchasing shares based on prevailing market conditions and in accordance with the NGX’s trading rules.
Dangote Cement, with a production capacity of 51.55 million tonnes per year spread across ten countries, aims to enhance shareholder value through the buyback program.
The company’s majority owner, Aliko Dangote, holds an 86 percent stake in Dangote Cement through his manufacturing group, Dangote Industries Limited.
Despite challenging operating environments, Dangote Cement demonstrated resilience in its financial performance.
The company’s profit in the first quarter of 2023 rose by 3.45 percent, reaching N109.5 billion ($237.8 million) compared to N105.85 billion ($230 million) in the same period last year, as reported in its financial results.
Although the company experienced a slight decline in revenue, with a marginal decrease of 1.56 percent from N413.18 billion ($897.3 million) to N406.72 billion ($883.3 million) in the first quarter of 2023, Dangote Cement remains optimistic about its future prospects.
The share buyback program reflects the company’s commitment to enhancing shareholder value and its confidence in the long-term growth potential of the business.