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: 714

•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...
Intersociety rubbishes DSS’ claim on arrest of IPOB...

Pastor in police net over ritual murder •Girl...

Troops destroy Boko Haram’s bomb factory, rescue women,...

UN opposes Trump’s ban on refugees

Expect plenty thunderstorm today, some cloudiness and rains...

Enugu council elections: ENSIEC will conduct credible polls...

N10bn IDP fund yet to yield tangible result...

Nigerian foot wear firm in South Africa produces...

Saraki celebrates return of Chibok girl from Sambisa...

Attack on ‘Resume or Resign’ protesters undemocratic, says...

Soldiers/Shiites Clash: Army to testify before Commission on...

Youths drown in Plateau well

 

Latest News Corruption scandal rocks Nahco •EFCC battles Board, Management over cover-up attempt 7 local government areas in Borno still under Boko Haram control — APC chieftain 4 Police Officers in trouble over murder No going back on airports concession, says FG Address marginalisation of Igbo now, Senators, Reps tell Buhari Nigeria exited recession in Q2 of 2017 — Budget Ministry Court dismisses Diezani’s application seeking to be joined in $1.6bn oil scam suit Staff of defunct Nigerian Airways get N45bn Trump hosts Buhari, others Foreigners rush to buy Nigeria’s debt Okowa hails Keyamo, Ohwovoriole on elevation as SAN The Chinese Prince and the Starving Tigers

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (278,506 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (260,403 views) Shameless Genevieve Nnaji exposes breasts in public (211,488 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (177,643 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (176,706 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (158,311 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (136,703 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (126,762 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (120,279 views) Lagos plane crash: Journalist releases victims’ names (111,205 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (110,384 views) APC cries foul as PDP’s Fayose takes early lead in Ekiti governorship election (102,746 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (28) Business (2,695) Business Verdict (22) Columnists (742) Complaints & Requests (93) Enterprise & Opportunities (178) Entertainment (378) Features (487) Global Business Monitor (178) International (1,543) Interviews (129) Live Commentary (28) Love Matters (73) News (28,567) Opinion (809) Pidgin (8) Politics (3,935) Religion (627) Sports (1,322) Stock Watch (23) AMA & Al Jazeera Global Update

 

UBA mobile app

CBN words on marble advert

 

 

Manchester United vs Everton 4-0 All Goals & Extended Highlights

 

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!