NewsExpress advert FCMB banner Fidelity bank banner NewsExpress advert
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: 2,686

•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

REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
Gunmen open fire on APC agents (1 killed,...

Aregbesola vrs Omisore: Tribunal reserves ruling indefinitely

3,500 male prostitutes active in Abuja —NACA

FG dragged to court over ‘total neglect’ of...

Osun Govt. vows to stamp out violence, gangsterism...

Ozubulu Church Killings: Questions Anambra Government, Police and...

More Boko Haram attacks likely: Report warns

Buhari’s 360,000 jobs for youths ready soon

Bankers aid money laundering in Nigeria, says Ribadu...

Is this the change Nigerians voted for?

NCC develops framework, guidelines for spectrum trading

Conference delegates clash over fuel subsidy removal

 

Latest News Imo APC crisis: Okorocha, Buhari meet again Lebanese, 16 others arrested over alleged illegal mining deal Buhari to receive 2018 Budget today — Saraki Standard Gauge: Laying of tracks starts fully in Lagos by June — Amaechi CBN injects another $100m into Forex: market •Vows to get tough with erring banks Anambra signs N9bn erosion control contract Stanbic IBTC Bank leads in cash management and trade finance African Development Bank delivers strong operational results NiMet predicts cloudy skies, heavy rains on Friday Open Letter to Governor Ambode: Santos Estate is crying for attention Wanted: Personal and institutional integrity, By Folu Olamiti Reps deal blow to Nigerian Peace Corps, step down Bill

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (345,636 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (342,442 views) Shameless Genevieve Nnaji exposes breasts in public (273,735 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (225,049 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (205,393 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (203,095 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (177,197 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (159,475 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (150,370 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (143,695 views) Lagos plane crash: Journalist releases victims’ names (140,196 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (132,597 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (42) Business & Economy (3,159) Business Verdict (43) Columnists (856) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (498) Features (598) Global Business Monitor (274) International (1,971) Interview (149) Live Commentary (28) Love Matters (120) News (35,576) Opinion (969) Pidgin (10) Politics (5,063) Religion (745) Sports (1,517) Stock Watch (29) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Boko Haram commanders surrender

 

APO Group Partner

 

 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement