Dangote sells 2.3% stake in Dangote Cement for N86.1bn at 5.5% discount to foreign interest

Africa’s richest man, Aliko Dangote, has sold 2.3 percent stake in Dangote Cement to foreign buyers in a stock market deal valued at N86.1 billion, according to market reports.

The Nigeria Stock Exchange, which is reported to have confirmed the sale Tuesday, said that a total of 416 million shares of Dangote Cement were traded at N210 in six off-market deals negotiated between Stanbic IBTC and Meristem stockbrokers.

Reports said the deal was between Dangote Industries Limited and some foreign investors.

Details of the deal indicate that shares of Dangote Cement were exchanged at a 5.5 percent discount of its market price of N222.22 on Tuesday.

Dangote Cement, which makes up one-third of the Nigerian bourse’s total market capitalisation, shed 0.68 percent of its market value on Tuesday, to close at N3.79 trillion ($10.4 billion).

According to an analyst, Dangote Cement, owned by Africa’s richest man Aliko Dangote and listed on the Lagos bourse in 2010, was yet to meet its minimum float requirement due to its heavy capitalization, which made finding a buyer though.

“Dangote has less than 10 percent free float as against the market’s requirement of 20 percent,” the analyst said.

Dangote Cement, the biggest listed company last week said its half-year pretax profit rose 24.6 percent to N155.58 billion ($426.3 million).

Meanwhile Nigerian’s equities Tuesday closed positive at 2.38 percent as All Shares Index rose to 36,720.62 in 5,602.00 market deals as the U.S. dollar edged higher on promising note of economic data largely supported by the global growth and company earnings.

By Remmy Alex