Cement Dangot it is constantly on track to realize the repurchasing target of up to 10 per cent of its common stockHaving received the authorization of the capital market regulator to start a new one show buyback.
The company announced on Wednesday that the Securities and Exchange Commission had validated the move, making Africa’s largest cement producer to launch its third share buyback in less than three years.
From the first stage completed on the last day of 2020, 40.2 million shares were bought back for N9.8 billion, which represents 0.2 percent of the total shares issued.
The second tranche, which was implemented last January, bought back over 126.7 million units or 0.7 percent amounting to N35.1 billion.
That leaves the total issued and fully paid shares of the company at about 16.9 billion units, with more than 1.5 billion shares due to be bought back to match Dangote Cement’s buyback ambitions.
“The share buyback program will be carried out in accordance with the approval given by the Company’s shareholders at the Extraordinary General Meeting of Dangote Cement PLC held on December 13, 2022,” the company said in a statement.
Buying back your own stock in some ways allows the company to give money back to shareholders with the expectation that fewer shares will strengthen the share price.
Dangote Cement’s share price rose 16.4 percent to N285 since the company completed its first share buyback on December 31, 2020, reaching N300 on May 16, 2022.
Cash and cash equivalents, the balance sheet item from where the money for buyback is usually sourced, stood at N283.8 billion, according to the 2022 annual report of the company’s audit.
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The figure was 16.5 percent weaker than a year earlier.
“The repurchase of shares will be done through an open market offer or independent tender, at that time and according to the conditions that may be determined by the Company’s Management, according to the prevailing market conditions,” the company said.
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