Dangote Cement Plc (NSE Ticker: DANGCEM) in a publication on the Nigerian Stock Exchange earlier today announced the commencement of its share buy-back programme.
The share buy-back programme will be effected in tranches, with Tranche I being executed by the appointed stockbrokers on the Company’s behalf. The share buy-back was approved by the Company’s shareholders at the Extraordinary General Meeting of DANGCEM held on 21 January, 2020.
The approval was within the framework provided under Rule 398 (3)(xiv) of the Securities and Exchange Commission’s Rules and Regulation. Rule 13.18 of the Rulebook of the Nigerian Stock Exchange also provide a supporting framework for the share buy-back.
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The Shareholders at the aforementioned meeting, approved the Company to undertake a share buy-buy of up to 10% of its issued shares, on such terms and condition, and at such times as the Board of the Directors deems fit.
Relevant details of Tranche I of the share buy-back are as below;
- Tranche Number: Tranche I
- Current Issued Shares: 17,040,507,404 fully paid up ordinary shares of 50 Kobo each
- Tranche Size: Up to 85,202,537 fully paid up ordinary shares of 50 Kobo each, representing 0.5% of the entire current issued shares
- Commencement Date: Wednesday, 30 December, 2020
- Completion Date: Thursday, 31 December, 2020, or when the entire Tranche Size has been purchased; whichever is earlier
- Duration: Tow (2) trading days
- Mode/Exchange: Open Market/Nigerian Stock Exchange
- Stockbrokers: Meristem Stockbrokers Limited and Vetiva Securities Limited
The Company through its appointed Stockbrokers will at its discretion purchase DANGCEM shares in the open market over the duration of Tranche I, subject to prevailing market conditions and under the current daily trading rules of The NSE.
DANGCEM stated that it would not be under any obligation whatsoever to purchase any or all of the DANGCEM shares put on offer over the duration of Tranche I share buy-back programme.
The shares being bought back by the Company under the share buy-back programme will be held as treasury shares, and may subsequently be cancelled. Execution of this Tranche I is not expected to have any material impact on the Company’s financial position.
Dangote Cement shareholders seeking to participate in Tranche I of the share buy-back 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 submission of trades on The NSE’s trading platform.
Shareholders and investors are advised to exercise caution when dealing in the securities of DANGCEM until the completion of Tranche I of the share buy-back programme. An announcement will be published upon completion of Tranche I of the programme.
About the Company
Dangote Cement Plc (“the Company”) was incorporated in Nigeria as a public limited liability company on 4th November, 1992 and commenced operations in January 2007 under the name Obajana Cement Plc.
The name was changed on 14th July 2010 to Dangote Cement Plc. Its parent company is Dangote Industries Limited (“DIL” or “the Parent Company”). Its ultimate controlling party is
Aliko Dangote.
The registered address of the Company is located at 1 Alfred Rewane Road, Ikoyi, Lagos, Nigeria. The principal activity of the Company and its subsidiaries (together referred to as “the Group”) is to operate plants for the preparation, manufacture and distribution of cement and related products.
The Company’s production activities are currently undertaken at Obajana town in Kogi State, Gboko in Benue State and Ibese in Ogun State; all in Nigeria.
By; Nnamdi M.
