The net worth of Africa’s richest man Aliko Dangote has surged by $300 million in a week following gains in the shares of Dangote Cement Plc amid news that the company is renewing its share buyback program. The news sent investors scampering for the company’s shares on the Nigerian Stock Exchange.
The news comes six months after the leading cement manufacturer completed the first tranche of its share buyback program. According to the Bloomberg Billionaire Index, Dangote, who had a net worth of $18.4 billion in January, has seen his net worth surge by a whopping $300 million within seven days.
Data from Reuters revealed that the share price of Dangote Cement increased from $0.51 (N212.00) on June 1 to $0.54 (N221.50) at close of market today, June 8. With Dangote owning the majority stake in his flagship company, the increase in the share price lifted his net worth from $16.7 billion on June 1 to $17 billion at the close of trade today.
This translates to an estimated $300 million increase for Dangote.
Dangote’s current net worth of $17 billion makes him the 117th richest man globally.
The billionaire controls Dangote Industries, a closely held conglomerate famed as the most diversified manufacturing conglomerate in Africa. Through Dangote Industries, the billionaire holds an indirect stake of 14,621,387,610 ordinary shares in Dangote Cement. In addition, he has a direct stake of 27,642,637 shares in the cement manufacturer.
His stake qualified him to receive a staggering cash balance of $570 million in dividends from the company’s profits.
Dangote Cement
Dangote Cement is Africa’s largest cement manufacturer, with a total installed cement production and bagging capacity of 48.55 million tonnes per annum. The mogul is the company’s chairman and single majority shareholder. He founded the cement company in 1981.
Dangote Cement declared a record-high revenue of $2.5 billion (N1.03 trillion) in 2020, making it the second Nigeria-listed entity after MTN to surpass the N1-trillion benchmark.
