Insider Dealing: Vetiva Securities Limited Sells Stake in Dangote Cement

The management of Dangote Cement Plc on Friday announced that Vetiva Securities Limited, an affiliate of a financial adviser, Vetiva Capital Management Limited, has sold total shares of 613,983 in Dangote Cement Plc.

In the statement forwarded to the Nigerian Stock Exchange (NSE), the company said the transaction was performed in three different deals last week.

According to the statement, Vetiva Securities Limited sold 213,983 shares of Dangote Cement Plc at N179.89 per share on November 9th, 2020 in Lagos.

On that very day, the securities company cut down another 150,000 at N183.13 per unit.

While on November 10th, the Vetiva sells another 250,000 at N180.30 a unit. Bringing total sales to 613,983 shares or N111,187,902.

In March, Vetiva Capital Management Limited projected strong growth for Dangote Cement Plc in 2020 despite competition.

The investment bank said “Notably, the moderation in Nigeria’s top-line was driven by a one per cent y/y drop in average revenue/ tonne to N43,221.69 even as volumes stayed largely flat y/y. Further to the above, the report stated that pan African revenues stayed flat in 2019, after weak pricing in Senegal and Zambia offset strong volume ramp ups in Tanzania (94 per cent up y/y) and Senegal (two per cent up y/y). Given an expectation of continued volume growth in Tanzania, Senegal, Congo and Sierra Leone, Vetiva projects a 10 per cent y/y growth in Pan African revenue in 2020.”

Therefore, the sold shares likely suggested a change in Vetiva view given COVID-19, current happenings, both in Africa and the rest of the world, and the projected drop in productivity in the first half of 2021. Also, it might be a profit taking strategy, especially with the current bullish run of the Nigerian Stock Exchange.