After announcing its intention to buy back its own shares from shareholders on Tuesday, Dangote Cement Plc saw a 9.27% increase in value. This increased purchasing activity on the Nigerian Exchange’s trading floor.
As a result of shareholders’ involvement in the company’s share repurchase, the market price increased by N30.6 in a single day to N360.7. After a protracted period in which MTN Nigeria relinquished its status as the most valuable brand on the local exchange, the market valued Dangote Cement at N6.145 trillion at the conclusion of the trading session.
Dangote Cement informed the Nigerian Exchange last week that the first tranche of its recently launched share buy-back program has begun. The world’s largest cement company, which ranks third among market movers, has reduced share price volatility in the past by repurchasing some of its own stock.
The stock’s current uptrend indicates that investors are taking part in Tranche I of the Share Buy-Back Program. The tranche I will be performed with the consent of the business’s shareholders at the Extraordinary General Meeting of Dangote Cement Plc scheduled on December 13, 2022, the business stated in its regulatory filing.
The quantity of shares to be repurchased under the Share Buy-Back Programme would not exceed 10% of Dangote Cement Plc’s issued capital, the cement business informed the Exchange. The Programme is being effected in tranches, with Tranche I being executed by the appointed stockbrokers on the Company’s behalf, according to a statement released to the regulator.
The programme, according to the company, 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. Its appointed Stockbrokers, will at its discretion purchase DCP’s 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.
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, as permissible under CAMA. Dangote Cement said execution of this Tranche I is not expected to have any material impact on the Company’s financial position.
