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Dangote Cement Plc Launches Bold Share Buyback Program, Reduces Issued Shares by 0.71% in First Tranche

Nigerian Cement Giant Repurchases N41.2 Billion Worth of Shares, Initiates Plan to Reduce Issued Capital by 10%



Dangote Cement Plc has embarked on a groundbreaking share buyback program, repurchasing approximately N41.2 billion worth of its issued shares from open transactions at the stock market.

The move comes as the company aims to reduce its issued shares by 10% under the newly approved buyback scheme.

According to regulatory filings at the Nigerian Exchange (NGX), Dangote Cement executed several transactions over two trading sessions to buy back about 0.71% of its issued share capital from the open market. In the first tranche of the share buyback program, the company successfully repurchased 121.40 million ordinary shares of 50 kobo each, valued at N41.16 billion. The average purchase price stood at N339 per share, slightly below the group’s initial target.

Following the completion of the first tranche, the total number of issued and fully paid outstanding shares of Dangote Cement has reduced to 16.75 billion ordinary shares of 50 kobo each.

The repurchased shares will be held as treasury shares, with the possibility of subsequent cancellation.

The share buyback program received resounding support from shareholders at an extraordinary general meeting in December 2022.

The approved scheme adheres to the framework provided under Section 186 (c) of the Companies and Allied Matters Act, No. 3 of 2020 (CAMA), and Rule 398 (3)(xiv) of the Securities and Exchange Commission (SEC)’s Rules and Regulations, 2013, in accordance with Rule 13.18 of the Rulebook of the Nigerian Exchange (NGX), 2015.

Under the new program, Dangote Cement can repurchase shares up to 10% of the group’s issued capital. The buyback will be carried out at the discretion of the company’s appointed stockbrokers, considering prevailing market conditions and adhering to the current daily trading rules of the NGX.

It is important to note that Dangote Cement is not obligated to purchase all shares put on offer during the specified buyback tranche, providing flexibility to optimize buyback decisions.

Dangote Cement grew turnover by 17% from N1.38 trillion in 2021 to N1.62 trillion in 2022 while gross profit also witnessed substantial growth, rising from N832.62 billion in 2021 to N955.43 billion in 2022.

However, the company faced upward pressure on operating expenses and finance costs, with administrative expenses and selling and distribution expenses seeing notable spikes. Despite this, Dangote Cement maintained a healthy operating profit of N585.88 billion in 2022, slightly higher than the N582.49 billion recorded in 2021.

Finance costs doubled in 2022 compared to the previous year, leading to a moderate decline in pre-tax profit from N538.37 billion in 2021 to N524 billion in 2022.

Nevertheless, the group’s net profit registered a positive growth of 5.0%, increasing from N364 billion in 2021 to N382 billion in 2022. Consequently, earnings per share improved to N22.27 in 2022 from N21.34 in 2021.

With the successful completion of the first tranche of the share buyback program, market analysts are keenly observing Dangote Cement’s future strategic moves to maximize shareholder value and bolster its market position in the cement industry.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Company News

Manufacturers Cut Spending on Alternative Energy Sources as Electricity Supply Improves



Manufacturing Sector - Investors King

Nigerian manufacturers reduced their spending on alternative energy sources by 21.25% to N60.4 billion in the first half of 2023, according to the Manufacturers Association of Nigeria (MAN).

This decline is attributed to the increased availability of electricity from the national grid, which improved to 11.3 hours per day, up from 10.2 hours in the same period of 2022.

The report also indicated a slight increase in daily power outages to 4.7 times from 4.4 times in H1 2022.

These improvements in grid electricity availability have positively impacted the manufacturing sector’s energy expenditure, leading to a significant drop from N76.7 billion spent in the second half of 2022.

However, the initial high expenditure on alternative energy sources was driven by skyrocketing diesel prices.

The cost of diesel had surged due to foreign exchange challenges and the implementation of a 7.5% Value Added Tax on Automotive Gas Oil (diesel).

Diesel prices in many states had risen to between N900 and N950 per liter, which threatened the production capacity of numerous manufacturing entities.

The Nigerian Textile Manufacturers Association expressed concerns about the potential closure of textile factories and job losses due to rising energy costs. Textile manufacturers, in particular, found it challenging to afford diesel at such prices.

The Chief Executive Officer of Coleman Technical Industries Limited also highlighted the increased production costs associated with higher diesel prices.

While the improvement in electricity supply is a positive development for manufacturers, the industry remains vigilant about energy costs and their impact on production.

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Company News

Dangote Group Subsidiaries Contribute N474 Billion in Taxes to Federal Government Over Three Years



Dangote Sugar - Investors King

In a significant testament to its commitment to corporate citizenship and financial responsibility, three subsidiaries of the Dangote Group have revealed that they paid a substantial total of N474 billion in taxes to the Federal Government over the past three years.

The disclosure was made by Hashem Ahmed, an official representing the multibillion-dollar conglomerate, during the opening ceremony of the 18th Abuja International Trade Fair, which focused on the theme ‘Sustainable financing and taxation as drivers of the new economy.’

The Dangote Group, led by its President Aliko Dangote, stands as not only the largest private-sector employer but also the country’s leading taxpayer. The remarkable N474 billion contribution was primarily made by Dangote Sugar, Dangote Cement, and Dangote Salt.

Also, the group has a longstanding history of extensive financial support, empowerment initiatives, corporate social responsibility programs, sponsorships, and philanthropic endeavors, amounting to several billions of naira.

Hashem Ahmed also expressed the group’s satisfaction with the Federal Government’s commitment to tax reform policies aimed at broadening the tax base and providing essential funding for infrastructure development in the country.

The Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, who spoke at the event, announced the government’s comprehensive plan to support small businesses and startups amid Nigeria’s economic challenges.

The plan includes a N75 billion investment by March 2024 to bolster the manufacturing sector, grants for microbusinesses in every local government, and a N75 billion fund to support up to 100,000 startups and MSMEs at favorable interest rates repayable over 36 months.

The government has also initiated partnerships with tech giants like Microsoft and the African Development Bank, signaling a bright future for Nigeria’s economic growth and innovation.

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Merger and Acquisition

Dangote Industries Set to Revolutionize Agriculture Industry with Mega Merger, Creating Dangote Foods Plc



Dangote Industries Limited has unveiled plans for a merger that will give rise to a formidable entity known as Dangote Foods Plc.

This colossal conglomerate is poised to transform the agriculture industry and enhance food security across the nation.

The merger will combine three subsidiaries of Dangote Industries Limited, including Dangote Sugar Refinery, Dangote Salt, and Dangote Rice, resulting in a diversely profitable mega-company.

The fusion, scheduled for completion by the end of 2023 pending regulatory approvals, promises to yield significant benefits for all stakeholders, notably shareholders.

Dangote Sugar Refinery’s Group Managing Director and CEO, Mr. Ravindra Singhvi, highlighted the merger’s strategic importance, stating its potential to create substantial shareholder value.

The amalgamation will not only generate cost-saving synergies but also expand product offerings and revenue streams.

Dangote Foods Plc is set to become a powerhouse in the market, boasting a wide array of products, including sugar, salt, tomato, and rice, among others. This merger will facilitate broader distribution capabilities and increased operational efficiency through synergy.

The journey towards this monumental merger began when Dangote Sugar Refinery notified the Nigerian Exchange Limited of its intention to merge with NASCON Allied Industries Plc and Dangote Rice Limited, both subsidiaries of Dangote Industries Limited.

This move marks a pivotal moment in the corporate history of Nigeria, with Dangote Industries Limited reaffirming its commitment to driving growth, innovation, and food security for the nation.

As regulatory approvals progress, Dangote Foods Plc is poised to emerge as a prominent player in Nigeria’s agricultural landscape, ultimately paving the way for a brighter and more sustainable future for the country.

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