By
Fawaz Adebisi
Dangote Cement Plc, has revealed its plans to offer a buyback of up to 10 percent of the company’s issued shares.
The company disclosed this on Sunday, November 21, 2022, in a statement on the Nigerian Exchange Limited.
According to the company, it currently has 16,873,559,251 fully paid-up ordinary shares of 50 Kobo each, as the size of the share buyback is up to 1,687,355,925 fully paid-up ordinary shares, less the treasury shares in the company’s capital.
Therefore, shareholders of the company would, on December 13, 2022, in Lagos, vote on the plan at an extraordinary general meeting.
It also said the authority granted will continue to be in force until the it has acquired up to an aggregate of 10% of its issued shares.
However, the price at which the buyback will be executed, according to the company, will be determined by the board, but it explained that this will not be more than 5% above the average calculated market price over the five days preceding the offer.
Dangote Cement therefore said the share buyback is being undertaken in the interest of the shareholders, stressing that such an exercise may result in an increase in the earnings per share, in the absence of any other mitigating factors.
Under a similar programme, Dangote Cement purchased 40,200,000 ordinary shares of 50 Kobo each from 30th December, 2020 to 31st December 2020, and 126,748,153 ordinary shares of 50 Kobo each from 19th January, 2022 and 20th January, 2022.
Those buybacks were made under the authority granted to the company by the shareholders at the extraordinary general meetings held on January 22, 2020, and May 26, 2021.
