Dangote Cement Plc has commenced the second tranche of its shares buyback programme.
Share buyback also known as share repurchase is the re-acquisition by a company of its own shares. It represents an alternate and more flexible way of returning money to shareholders.
Edward Imoedemhe, the Deputy Company Secretary of the Dangote Cement Plc said in a statement on Wednesday that the announcement follows the approval granted it by shareholders.
According to Dangote Cement, up to 170,003,074 fully paid-up ordinary shares of 50 Kobo each, representing 1 per cent of the currently issued shares, fewer treasury shares would be repurchased.
It fixed the Commencement date for Wednesday, 19 January 2022, while the Completion date is scheduled for Thursday, 20 January 2022, or when the entire Tranche size has been purchased; whichever is earlier
“Dangote Cement Plc hereby announces the commencement of the second tranche of its share buyback programme (“Tranche II”).
accordance with Rule 13.18 of the Rulebook of the Nigerian Exchange Limited (“NGX”). Based on the aforementioned shareholders’ approval, the number of shares to be repurchased under the Share Buy-Back Programme will not exceed 10% of DCP’s
issued capital”.
Through its appointed Stockbrokers, the Company will, at its discretion, purchase
DCP’s shares in the open market over the duration of Tranche II, 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 II.
“The shares being repurchased by the Company under the Share Buy-Back Programme will be held as treasury shares and may subsequently be cancelled. Execution of this Tranche II is not expected to have any material impact on the Company’s financial
position.”
The industrial giant noted that “Dangote Cement shareholders seeking to participate in Tranche II of the Share Buyback Programme are hereby advised to contact their stockbrokers or any other
independent professional adviser registered as a capital market operator by the SEC for further guidance on the submission of trades on the NGX’s trading platform. DCP will provide weekly updates on the progress of Tranche II of the Programme on its
website over the duration of this tranche.
“The Company will continue to monitor the evolving business environment and market conditions in making decisions on further tranches of the Share Buy-Back Programme. Shareholders and investors are advised to exercise caution when dealing in the securities of Dangote Cement until the completion of Tranche II of the Share BuyBack Programme. An announcement will be published upon completion of Tranche II of the Programme.
Dangote Cement Plc had in December 2020 carried out its first Tranche of share buyback when it repurchased a total of 40,200,000 units of shares representing 0.24% of the company’s issued and fully paid ordinary shares, at an average price of N243.0218 per share, valued at N9.77 billion.
