TheCable

Shares of Dangote Cement, Africa’s biggest cement producer, was on full bid yesterday gaining 10 percent — the biggest in five months, as investor interest in the cement maker drove its share price to N230.40 — the highest in 28 months.

The last time it traded that high was on August 24, 2018, when it traded at N235.

This is coming ahead of a share buy back to hold on December 30.The company had announced plans of a buyback of the company’s shares next week to boost shareholder value

In a notice filed on the Nigerian Stock Exchange (NSE) on Monday, the company said it will repurchase 10 percent out of its total 17,040,507,404 issued shares of 50 kobo each.

The shares will be acquired in portions, beginning with a first tranche of 85,202,537 shares, representing 0.5percent of the company’s entire issued shares.

The purchase to be handled by the company’s appointed stockbrokers is projected to run for two trading days or “when the entire Tranche Size has been purchased; whichever is earlier.”

“The Share Buy-Back Programme will be executed under the approval granted by the Company’s shareholders at the Extraordinary General Meeting of DCP which held on 21 January, 2020, within the framework provided under Rule 398 (3)(xiv) of the Securities and Exchange Commission’s (“SEC”) Rules and Regulations (as applicable) and in accordance with Rule 13.18 of the Rulebook of the Nigerian Stock Exchange,” the statement read.

“Based on the aforementioned shareholders’ approval, the number of shares to be repurchased under the Share Buy-Back Programme will not exceed 10% of DCP’s issued capital.”

According to the company, the shares being bought back will be held as treasury shares, and may be cancelled afterwards.

“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, ” the statement read.

“DCP will provide weekly updates on the progress of Tranche I of the Programme on its website over the duration of this tranche. The Company will continue to monitor the evolving business environment and market conditions, in making decisions on further tranches of the Share Buy-Back Programme.”

The company had said the share buyback would increase long term shareholder value, a valuable tool for managing the capital structure and balance sheet efficiency, window to return cash to shareholders.