Dangote Cement To Buy Back Shares - What Shareholders, Investors Need To Know

Dangote Cement Plc (DCP) is planning on repurchasing shares bought by shareholders of the company. Dangote Cement is taking the decision under its share buy-back programme to acquire shares held by the shareholders within two days in December this year.

The share buy-back will be done in tranches, with the first tranche conducted between Wednesday, December 30 and 31 of same month, while Meristem Stockbrokers Limited and Vetiva Securities Limited will be executing the buy-back exercise on behalf of the company owned by Aliko Dangote.

AllNews gathered that the tranche size will be up to 85,202,537 fully paid up ordinary shares of 50 Kobo each, representing 0.5% of the entire current issued shares, which is 17,040,507,404 fully paid up ordinary shares of 50 Kobo each. However, according to Dangote Cement, "The number of shares to be repurchased under the Share Buy-Back Programme will not exceed 10% of DCP’s issued capital.

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It was learnt that while the exercise will take two days, it could end earlier than scheduled depending on "when the entire Tranche Size has been purchased." The repurchasing of shares will take place in an open market which is the Nigerian Stock Exchange (NSE).

AllNews learnt that the shares repurchased under the buy-back programme will be held as treasury shares by the company, but "may subsequently be cancelled." Also, Dangote Cement's financial position is not expected to be materially affected by the execution of this Tranche I.

What Shareholders Need To Do

For shareholders interested in the share buy-back by Dangote Cement, should "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 should note that Dangote Cement stated that it is not obligated to repurchase any or all shares tendered by shareholders during the first tranche, as buying back the shares will be done by discretion of the cement company.

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"The Company through its appointed Stockbrokers will at its discretion purchase DCP 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. 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 I."

Meanwhile, shareholders were advised to be careful while dealing in shares of Dangote Cement during the first Tranche of the bu-back, as the exercise could influence market price or activities relating to Dangote Cement shares on NSE.

"Shareholders and investors are advised to exercise caution when dealing in the securities of Dangote Cement 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."