Dangote Cement to Buy Back 1.704 Billion shares
Dangote Cement on Monday announced it will commence share buy-back not exceeding 10 percent or 1.704 billion shares of its issued capital.
The leading cement manufacturer said the programme will be effected in tranches with Tranche I being executed by Meristem Stockbrokers Limited and Vetiva Securities Limited, the two appointed brokers.
In a statement issued through the Nigerian Stock Exchange (NSE), Dangote Cement said the first tranche will commence on December 30 and close on the 31 or when the entire tranche size has been purchased; whichever is earlier.
Dangote Cement current issued 17,040,507,404 shares, out of which up to 85,202,537 shares or 0.5 percent of the entire issued shares will be purchased on Wednesday 30 December, 2020 at the open market (The Nigerian Stock Exchange) in Tranche I. The remaining shares will be acquired in 2021 in tranches.
The statement reads in part, “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.
“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 BuyBack 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.
“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.”