Dangote Cement moves market ahead of Dec. 30 set for Tranche-1 share buy-back
…targets 85.202m units representing 0.5% of entire current issued shares …stock gains circa N30 in 2 days
Ahead of Wednesday, December 30, which Dangote Cement Plc has set to commence its share buy-back programme, its shares have continued to lead rally on the Nigerian Stock Exchange (NSE).
Africa’s biggest cement producer will be executing share buy-back under the approval granted by its shareholders at the Extraordinary General Meeting (EGM) held on January 21, 2020.
Since the announcement of the share buy-back on Monday, Dangote Cement has gained over N28, from N209.5 to N237.5 (as at 12 pm on Tuesday).
The share buy-back programme is within the framework provided under Rule 398 (3)(xiv) of the Securities and Exchange Commission (SEC) Rules and Regulations (as applicable) and in accordance with Rule 13.18 of the Rulebook of the Nigerian Stock Exchange (NSE).
The number of shares to be repurchased under the Share Buy-Back Programme will not exceed 10percent of Dangote Cement Plc issued capital, according to a notice at the Nigerian Stock Exchange.
The share repurchase will be completed on Thursday, December 31, 2020, or when the entire Tranche Size has been purchased; whichever is earlier.
The Programme will be effected in tranches, with Tranche I being executed by the appointed stockbrokers Meristem Stockbrokers Limited and Vetiva Securities Limited on the Company’s behalf.
Dangote Cement Plc has 17,040,507,404 units fully paid up issued share capital of 50 kobo each. The first tranche of the share buy-back is up to 85,202,537 units of fully paid up ordinary shares of 50 kobo each, representing 0.5percent of the entire current issued shares.
The Company through its appointed Stockbrokers will at its discretion purchase Dangote Cement Plc 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.
Dangote Cement Plc 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.
Dangote Cement Plc said it 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.
Shareholders and investors are advised to exercise caution when dealing in the securities of Dangote Cement until the completion of Tranche I of the Share BuyBack Programme. An announcement will be published upon completion of Tranche I of the Programme.