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Dangote Cement commences share buyback with 85.203m shares
Dangote Cement commences share buyback with 85.203m shares
- Limits repurchase to 10% of issued capital
- Cautions investors in dealing with its shares
Dangote Cement Plc (Dangote Cement or DCP) has announced the commencement of the Tranche I of its long-awaited share buyback programme.
The most capitalized securities at the Nigerian Stock Company disclosed this through a filling at the bourse on Monday, giving details of the programme.
Stock buybacks refer to the repurchasing of shares of stock by the company that issued them. A buyback occurs when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors
The Share Buy-Back Programme will be executed under the approval granted by the Company’s shareholders at the Extraordinary General Meeting of DCP which held on 21 January, 2020.
It is also within the framework provided under Rule 398 (3)(xiv) of the Securities and Exchange Commission’s (SEC) Rules and Regulations (as applicable) and in accordance with Rule 13.18 of the Rulebook of the Nigerian Stock Exchange.
Based on the aforementioned shareholders’ approval, the number of shares to be repurchased under the Share Buy-Back Programme will not exceed 10 per cent of DCP’s issued capital, the company has said.
The Programme will be effected in tranches, with Tranche I being executed by Meristem Stockbrokers Limited and Vetiva Securities Limited as appointed stockbrokers on the Company’s behalf.
Relevant details of this Tranche I are set forth below:
The Company through its appointed Stockbrokers will at its discretion purchase DCP 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.
“DCP 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.
DCP further stated that execution of the 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,” the statement read.
Dangote Cement also promised to provide weekly updates on the progress of Tranche I of the Programme on its website over the duration of this tranche.
It also said it 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.”
