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Dangote Cement To Repurchase 170m Shares In Buyback Programme

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Dangote Cement Plc has commenced the second tranche of the shares buyback programme as the management proposed to repurchase 170.003 million shares from shareholders.

Share buyback, or share repurchase, is when a company buys back its own shares from investors or shareholders. It can be seen as an alternative, tax-efficient way to return money to shareholders.

This comes after the company’s shareholders approved the move at the annual general meeting(AGM) held in May 2021.

This was revealed in the company’s disclosure which was signed by the company’s secretary, Edward Imoedemhe on the Nigerian Exchange Limited.

The second tranche of the programme entails that up to 170.003 million fully paid-up ordinary shares of 50 Kobo each, representing one per cent of the currently issued shares, less treasury shares will be repurchased.

The programme is scheduled to commence on the January 19 to January 20, 2022.

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The company stated that the purchase of the shares will take place in the open market over the duration of the programme and will be subject to prevailing market conditions and under the current daily trading rules of the NGX.

The firm also said the shares being repurchased by the Company under the Share Buy-Back Programme will be held as treasury shares and may subsequently be cancelled, saying, execution of this Tranche II is not expected to have any material impact on the Company’s financial position.

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.

It noted that, “shareholders and investors are advised to exercise caution when dealing in the securities of Dangote Cement until the completion of Tranche II of the Share BuyBack Programme.”

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On December 31, 2020, Dangote Cement had completed the first tranche of its share buyback programme, repurchasing shares worth N40.20 million at N243 per share, at a total value of N9.8 billion. Dangote Cement has a total value of N17.041 billion fully paid-up ordinary shares of 50 kobo each.

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