GTB 737 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

Views: 349

•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


 

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!

 

You may also like...
BREAKING: Buhari withdraws minister’s nomination

Kanu: IPOB calls for dismissal of remaining charges...

Kaduna bars FRSC

FG deploying science and technology to diversify economy:...

Fayose shuns FG, States meeting over TSA •Adamant...

Kenya sends team to Nigeria to study EFCC’s...

Anambra gets Mega Shopping Mall and Convention Centre...

Jonathan tasks security agencies over anti-Igbo song •Condemns...

Military replies Boko Haram over rocket-making factory

Agency serves notice of looming ban on use...

Wike is a pathological liar, despot — Dakuku...

Sharia court orders trader remanded in prison custody...

 

Latest News Osinbajo reshuffles permsecs Senate warns PenCom, CBB, ICPC headship nominees not to assume duty before confirmation Like Buhari, Nigeria’s economy also on recovery path — Osinbajo Buhari’s return: A nation’s hope fulfilled, says Tinubu Daura Emirate Council to hold special prayers for Buhari CNPP welcomes back Buhari, calls for better governance Bayelsa Govt. seeks probe of deaths at APC state congress Sani outlines conditions for passage of law on hate speech How Kuje Police ‘killed’ case of kidnap, attempted murder of citizen Ugochukwu World Humanitarian Day: Obaseki salutes aid workers, seeks more support for war victims Today’s Weather: Rains likely over Owerri, Port Harcourt, Eket, Uyo and Calabar, says NiMet 32 African parties meet to explore ways to promote political cooperation, continnetal unity

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (271,983 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (253,899 views) Shameless Genevieve Nnaji exposes breasts in public (206,302 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (174,334 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (172,995 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (154,607 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (133,839 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (125,044 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (117,899 views) Lagos plane crash: Journalist releases victims’ names (109,353 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (108,649 views) APC cries foul as PDP’s Fayose takes early lead in Ekiti governorship election (101,217 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (27) Business (2,661) Business Verdict (19) Columnists (728) Complaints & Requests (92) Enterprise & Opportunities (172) Entertainment (351) Features (476) Global Business Monitor (170) International (1,494) Interviews (128) Live Commentary (28) Love Matters (67) News (27,588) Opinion (781) Pidgin (8) Politics (3,857) Religion (595) Sports (1,306) Stock Watch (23) AMA & Al Jazeera Global Update

 

UBA mobile app

CBN words on marble advert

 

 

Senator Adeleke on the dancing steps in London

 

APO Newsbreak logo

 

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



 

 

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!