Dangote Cement to buy back additional 170 million shares

Dangote Cement Plc has announced the commencement of the second tranche of its share buyback programme.

Africa’s biggest cement producer said on Wednesday it would repurchase up to 170,003,074 fully paid-up ordinary shares of 50 kobo each, representing one per cent of its currently issued shares.

In January last year, the company announced that it bought back 40.2 million of its shares for N9.77bn at an average price of N243.0218. The first tranche of its share buyback programme was announced on December 21, 2020.

It said the second tranche would be executed under the approval granted by the company’s shareholders at the Annual General Meeting held on May 26, 2021, within the framework provided by the Securities and Exchange Commission and the Nigerian Exchange Limited.

The company said in a statement that the second tranche would commence on January 19, 2022 and end on January 20 “or when the entire tranche size has been purchased; whichever is earlier”.

It said based on the shareholders’ approval, the number of shares to be repurchased under the share buyback programme would not exceed 10 per cent of the company’s issued capital.

The statement said through its appointed stockbrokers, the company would, 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.

“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,” it said.

According to the statement, the execution of the second tranche is not expected to have any material impact on the company’s financial position.

The company said it would continue to monitor the evolving business environment and market conditions in making decisions on further tranches of the share buyback 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,” it added.

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