Dangote Cement seeks shareholders’ approval for share buy-back

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Dangote Cement

Dangote Cement Plc is seeking shareholders’ approval to embark on share buy-back in move aimed at improving return on equity and shareholder value.

In a notification to the Nigerian Stock Exchange (NSE), the cement company said it would convene an extra-ordinary general meeting (EGM) of shareholders for January 22, 2020, to amend its Articles of Association to enable it undertake a share buy-back of up to 10 per cent of its issued shares on such terms, and conditions and at such times as the board of directors deems fit.

It said the programme was in line with the company’s corporate strategy to improved its return on equity, and shareholder value in order to future long term growth.

“The relevant shares will be repurchased out of the profits of the company and any such number of shares bought under the programme is required to be cancelled in accordance with the Securities and Exchange Commission (SEC) rules and the NSE rule book which will consequently lead to a reduction in issued share capital,” the company said.

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Dangote Cement Plc has been adding value to shareholder value, paying dividend regularly. For instance, it paid N16 dividend per share for 2018 financial.

And the chairman of the company, Alhaji Aliko Dangote said the shareholders and staff were bedrock of the company and expressed optimism on the prospects of the company.

According to him, the company will be effectively operating in a minimum of 18 African countries in a short while by increasing the capacity of its Obajana Plant to 16 million metric tons, making it one of the biggest cement plant in the world.

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(The Nation)