By Onome Amuge.
Dangote Cement Plc (DCP) has announced the commencement of the first tranche of its newly established share buy-back programme, in which it intends to repurchase up to 168,735,593 fully paid-up ordinary shares,representing one per cent of the entire current issued shares at 50 Kobo each, valued at N50.6 billion.
The multinational cement manufacturer, in a July 7 notice presented to the Nigerian Exchange (NGX), said the Tranche 1 programme will commence on Monday July 17, 2023 and completed on Tuesday July 18, 2023, or when the entire Tranche I size has been purchased (whichever is earlier). It also noted that the duration of the tranche I of the share buy-back programme is two trading days and it will be done at the open market of the Nigerian Exchange Limited (NGX).
According to Dangote Cement, the tranche size excludes 166,948,153 shares held as treasury shares, following the conclusion of Tranche I and II of the Company’s previous share buyback programme.
The company stated, “Tranche I will be executed under the approval granted by the Company’s shareholders at the Extraordinary General Meeting of DCP which held on December 13, 2022.
Within the framework provided under Section 186 (c) of the Companies and Allied Matters Act, No. 3 of 2020 (as amended) (CAMA) and Rule 398 (3)(xiv) of the Securities and Exchange Commission’s (SEC) Rules and Regulations, 2013 (as amended from time to time) and in accordance with Rule 13.18 of the Rulebook of the Nigerian Exchange Limited (NGX), 2015.”
Based on the aforementioned shareholders’ approval, Dangote Cement said the number of shares to be repurchased under the share buy-back programme will not exceed 10 per cent of its issued capital.
The company disclosed that the programme is being effected in tranches, with Tranche I being executed by the appointed stockbrokers on the company’s behalf.
Dangote Cement further noted that through its appointed Stockbrokers, it will at its discretion purchase the 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 NGX.
Dangote Cement shareholders seeking to participate in Tranche I of the Share Buy-Back programme are therefore advised to contact their stockbrokers or any other independent professional adviser registered as a capital market operator by the securities and exchange commission (SEC) for further guidance on the submission of trades on the NGX’s trading platform.
Dangote Cement stated that it will provide weekly updates on the progress of Tranche I of the programme on its website over the duration of the tranche, adding that it will continue to monitor the evolving business environment and market conditions, in making decisions on subsequent 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 Buy-Back Programme. An announcement will be published upon completion of Tranche I of the Programme,” Dangote Cement stated.
