Dangote Cement has announced the launch of its second share buyback programme, according to a regulatory filing. The largest cement company by market capitalisation at the local bourse said the second tranche will be executed under the approval granted by its shareholders at the Annual General Meeting (AGM).
The second tranche which is pegged at about 170,003,074 fully paid-up ordinary shares of 50 Kobo each, representing 1% of the currently issued shares, excluding treasury shares will be open from January 19 and end on 20, the company said.
Dangote Cement Plc has 40,200,000 shares held as treasury shares, following the conclusion of Tranche I of the share buyback Programme. At the company AGM held on 26 May 2021, shareholders ratify the share buyback plan, to be executed with applicable Securities and Exchange Commission and Nigerian Exchange rules and regulations.
It explains that 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.
The programme is being effected in tranches, with the second Tranche being executed by the appointed stockbrokers on the Company’s behalf, the statement reads.
“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”.
It said in the regulatory filing that Dangote Cement Plc would however not be under any obligation whatsoever to purchase any or all of its 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, the company said.
The announcement informs that the execution of this Tranche II is not expected to have any material impact on the Company’s financial position.
According to the announcement, Dangote Cement shareholders seeking to participate in Tranche II of the share buyback are 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.
The company said it will provide weekly updates on the progress of Tranche II of the Programme on its website over the duration of this tranche.
