Fidelity bank banner UBA 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 Share on Google+

Views: 3,298

•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

 

You may also like...
AFCON Cracker: Nigeria, South Africa talk tough ahead...

GAIN Executive Director awarded 2018 World Food Prize...

Jonathan probes embattled NIPC boss; Association applauds

Naspers targets Africa’s financial services industry

58 Boko Haram sex slaves regain freedom

We’re ready for investments from all quarters to...

Extradition: Supreme Court to decide Kashamu’s fate

Buhari storms Akure for APC mega rally, rallies...

Apologise to Ogonis, Ndi Igbo for military invasion...

Amnesty office dismisses reports, says not owing graduands...

Group demands immediate release of incarcerated blogger Chris...

Elumelu tasks Clinton, Trump on US-Africa Policy

 

Latest News Missing DELSU student found dead with tongue, breasts severed Fayose’s trial: We moved N1.2bn cash in three planes —Witness APC fortunes bleak unless Oshiomhole resigns, South-South aggrieved aspirants insist Kwara people planning Saraki’s retirement from politics — Oshiomhole David Mark’s daughter dumps PDP for APGA As President, I’ll make difficult decisions to fix Nigeria: Atiku APC threatens to expel Okorocha’s son-in-law, Abe, Shittu, others Minister expresses worry over 2.5m malnourished children in Nigeria APC appoints Peace and Reconciliation Committees Air Force hits Boko Haram workshop, staging post Chicago hospital shooting leaves 4 dead, including police officer and gunman Three arrested in Australia after 'ISIS-inspired' terror plot foiled

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (422,584 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (390,707 views) Shameless Genevieve Nnaji exposes breasts in public (323,793 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (272,407 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (244,756 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (227,778 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (209,542 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (191,097 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (176,424 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (168,873 views) Lagos plane crash: Journalist releases victims’ names (165,449 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (152,286 views)

 

Zenith Zero Balance First Bank chat banking

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (74) Business & Economy (3,801) Business Verdict (54) Columnists (964) Complaints & Requests (95) Enterprise & Opportunities (208) Entertainment (568) Features (670) Global Business Monitor (311) International (2,706) Interview (167) Live Commentary (28) Love Matters (146) Maggie's Blog (38) News (40,683) Opinion (1,145) Pidgin (13) Politics (7,804) Religion (903) Sports (1,780) Stock Watch (35) AMA & Al Jazeera Global Update

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera