Finance
Dangote Cement PLC Launches Share Buy-Back Programme, Starting with Tranche I
The Share Buy-Back Programme received unanimous approval from DCP’s shareholders during the Extraordinary General Meeting held on December 13, 2022
Dangote Cement Plc (DCP), Africa’s leading cement producer, has announced the launch of its highly anticipated Share Buy-Back Programme, commencing with the first tranche, Tranche I.
This strategic move aims to repurchase a portion of DCP’s issued capital, demonstrating the Company’s confidence in its long-term growth prospects and commitment to delivering value to shareholders.
The Share Buy-Back Programme received unanimous approval from DCP’s shareholders during the Extraordinary General Meeting held on December 13, 2022.
Under the legal framework provided by the Companies and Allied Matters Act and the Securities and Exchange Commission’s Rules and Regulations, the programme allows DCP to repurchase up to 10% of its issued capital.
Tranche I of the programme will be executed by the Company’s appointed stockbrokers on the Nigerian Exchange Limited (NGX), adhering to the guidelines specified in the Rulebook of the NGX and the prevailing market conditions.
This tranche will involve the repurchase of up to 168,735,593 fully paid-up ordinary shares of 50 Kobo each, representing 1% of the current issued shares.
Starting on Monday, July 17, 2023, and lasting for two trading days, DCP’s stockbrokers will actively engage in purchasing shares on the open market of the NGX.
However, it is important to note that the Company is not obligated to acquire all the shares offered during Tranche I, maintaining flexibility based on market dynamics.
The repurchased shares will be classified as treasury shares, complying with the provisions outlined in the Companies and Allied Matters Act. It is worth mentioning that the execution of Tranche I is not expected to have a significant impact on DCP’s financial position.
In order to participate in Tranche I of the Share Buy-Back Programme, Dangote Cement shareholders are advised to reach out to their stockbrokers or registered independent professional advisers, who are capital market operators approved by the Securities and Exchange Commission. These experts will provide the necessary guidance on submitting trades on the NGX’s trading platform.
In light of these developments, shareholders and investors are advised to exercise caution when trading Dangote Cement’s securities until the completion of Tranche I of the Share Buy-Back Programme. An official announcement will be published to mark the completion of this initial tranche.