Shell Energy Entrepreneurs banner Yudala banner
Dangote Cement sells N86.1bn stake to foreign investors

By Chijioke Ohuocha on 01/08/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 2,024

•Dangote Industries President Aliko Dangote
•Dangote Industries President Aliko Dangote

Nigeria’s Dangote Industries Limited sold a 2.3 percent stake in Dangote Cement to foreign investors on Tuesday in a stock market deal valued at 86.1 billion naira ($236 million).

Africa’s biggest cement maker has been selling small stakes to increase its free float, which is well below the Nigerian stock exchange’s required level.

A spokesman for the Nigerian Stock Exchange said 416 million shares of Dangote Cement were sold on Tuesday at 210 naira each in six off-market deals negotiated between Stanbic IBTC and Meristem stockbrokers.

The price was below Dangote Cement’s closing price on Monday of 223.75 naira. Shares in the company, owned by Africa’s richest man Aliko Dangote, jumped after news of the share sale, closing up 7.3 percent at 240 naira, valuing the company at 4.09 trillion naira ($11.2 billion).

A spokesman for the cement maker said the deal was between Dangote Industries Limited and some foreign investors, whom he did not identify.

The transaction increases Dangote Cement’s free float to 10.4 percent according to Thomson Reuters calculations, still well below a stock market requirement of 20 percent.

It is the biggest company on the Nigerian Stock Exchange, accounting for a third of the bourse’s total market capitalisation, and when it listed in 2010 the bourse waived its free float requirement because it wanted to encourage more companies to list.

It gave Dangote 18 months to reach the 20 percent level but a banking source said the company has still yet to meet its minimum float requirement as local investors dislike its high valuation and foreign investors have been deterred by a currency crisis in Nigeria.

In 2013, Dangote Industries sold 1.5 percent of its 95 percent stake in Dangote Cement to South Africa’s Public Investment Corporation (PIC) for $289.3 million.

Subsequently it sold a 1.4 percent stake to Sovereign fund Investment Corp of Dubai (ICD) for $300 million in 2014.

Dangote Cement told Reuters last month that it planned to invest about $4 billion over the next two to three years to nearly double its production capacity to 80 million tonnes in Africa.

However it faces competition in Africa from French cement maker Lafarge which has combined its Nigerian and South African businesses to accelerate growth on the continent, as well as other local rivals.

Last week Dangote Cement reported a 24.6 percent rise in half-year pretax profit to 155.58 billion naira. (Reuters)

Source News Express

Posted 01/08/2017 8:40:31 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

 

You may also like...
Meningitis enters Cross River, records casualty

ECOWAS to have TV, radio channels by 2017...

Edo, Delta govts depriving Egbema kingdom of entitlements:...

Board approves equal salary grade for HND and...

Nike fires Pacquiao over anti-gay comment

Buhari, Osinbajo, ministers meet today to discuss 2017...

Ikpeazu inaugurates electricity projects

No confab report, no Nigeria, Falae insists

We’re steadily pushing back Boko Haram —Jonathan

7 IPOB members in court over alleged murder,...

UNIOSUN top officials quizzed over contract padding, other...

Today’s weather: Expect rain, clouds and thunderstorm —NiMET...

 

Latest News Court orders release of 475 Boko Haram suspects for rehabilitation Confession of a rituals: I pay N10,000 for virgins' underwears FG deploys Agro Rangers to end herders-farmers’ clashes Lassa Fever: Delta places 24 under surveillance; confirms 3 deaths, 7 cases Get Shekau dead or alive, Buratai charges troops Dangote, others for Editors’ Plaza foundation-laying ceremony Air Peace passenger steals N1m on board flight, faces trial 2019: Niger APC endorses President Buhari, Governor Sani Bello •Receives 34,000 decampees IG deploys 3 additional Police Mobile Force units to Zamfara in bid to end killings Florida school shooting: Students to march on Washington Saraki invites child comedienne Emmanuella to the Senate NiMet predicts cloudy skies for Monday

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (324,811 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (316,351 views) Shameless Genevieve Nnaji exposes breasts in public (252,960 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (207,641 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (194,054 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (186,642 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (162,179 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (145,540 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (139,794 views) Lagos plane crash: Journalist releases victims’ names (128,684 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (127,168 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (122,520 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (34) Business (2,894) Business Verdict (33) Columnists (802) Complaints & Requests (94) Enterprise & Opportunities (203) Entertainment (445) Features (548) Global Business Monitor (225) International (1,796) Interviews (143) Live Commentary (28) Love Matters (104) News (32,923) Opinion (883) Pidgin (10) Politics (4,503) Religion (677) Sports (1,433) Stock Watch (27) AMA & Al Jazeera Global Update

 

CBN Banner advert

CBN Words on marble

 

 

Football president George Weah puts Liberian army to the test

 

APO Group Partner

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement