Dangote Cement Announces Commencement of Share Buy-back Programme
Today, Dangote Cement (ticker: DANGCEM) began the process of its much-awaited share buy-back programme, with the company announcing that its first tranche will be opened on the 30th December 2020, and close the next day.
According to document submitted on the Nigerian Stock Exchange on Monday, the management hinted that its first tranche will close the next day after it opened.
However, detail showed that the management is looking set to buying-back only an infinitesimal 0.5% of the entire shares in issue.
This translates to 85.203 million as against 1.7 billion previously announced.
Read Also: Dangote cement sustains 54,000 jobs in 4 African countries
According to the group, the Share Buy-Back programme will be executed under the approval granted by the Company’s shareholders at the Extraordinary General Meeting held on 21 January, 2020.
The meeting was held within the framework provided under Rule 398 (3)(xiv) of the Securities and Exchange Commission’s rules and Regulations and in accordance with Rule 13.18 of the Rulebook of the Nigerian Stock Exchange .
The group said based on the aforementioned shareholders’ approval, the number of shares to be repurchased under the Share Buy-Back Programme will not exceed 10% of the company’s issued capital.
However, the company said the Programme will be effected in tranches, with Tranche I being executed by the appointed stockbrokers on the Company’s behalf.
The document submitted to NSE reads: “The Company through its appointed Stockbrokers will at its discretion purchase Dangote Cement 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 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 said shareholders seeking to participate in Tranche I of the Share Buy-Back 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.
The company said it will provide weekly updates on the progress of Tranche I of the Programme on its website over the duration of this tranche.
In addition, it explained that 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.
Meanwhile, 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.
Nonetheless, the market reacted strongly to the news, with DANGCEM notching higher by as much as 9.98% at the close of the market.
Dangote Cement Announces Commencement of Share Buy-back Programme
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