BY FESTUS OKOROMADU
The Board of Dangote Cement Plc has announced a share buy-back programme that will allow it to purchase one percent of the company’s entire issued shares between Monday July 17 and Tuesday July 18, 2023, under an open market trading on the Nigeria Exchange Limited.
The programme which is said to be the first tranche of its newly established share buy-back scheme will be executed under the approval granted by the Company’s shareholders at the Extraordinary General Meeting which was held on December 13, 2022.
A notification signed by DCP’s Head, Investor Relations, Temilade Aduroja, sent to NGX on Friday, said up to 168,735,593 fully paid-up ordinary shares of 50 Kobo each, representing 1% of the entire current issued shares will be acquired under the scheme.
Currently, DCP has 16,873,559,251 fully paid-up ordinary shares of 50 Kobo each (excluding treasury shares).
The company had earlier executed tranche 1 and 11 scheme of share buy-back where 166,948,153 shares were acquired and held as treasury shares.
Addressing the legality of the programme, Aduroja, stated: “Tranche I will be executed under the approval granted by the Company’s shareholders at the Extraordinary General Meeting of DCP which was held on 13 December 2022.
“Within the framework provided under Section 186 (c) of the Companies and Allied Matters Act, No. 3 of 2020 (as amended) (“CAMA”) and Rule 398 (3)(xiv) of the Securities and Exchange Commission’s (“SEC”) Rules and Regulations, 2013 (as amended from time to time) and in accordance with Rule 13.18 of the Rulebook of the Nigerian Exchange Limited (“NGX”), 2015.
“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 Tranche I being executed by the appointed stockbrokers on the Company’s behalf.”
“The company had earlier executed tranche 1 and 11 scheme of share buy-back where 166,948,153 shares were acquired and held as treasury shares”
According to the document, the offer will be open on the NGX from, “Monday, 17 July 2023 and completed on Tuesday, 18 July 2023, or when the entire Tranche I size has been purchased; whichever is earlier.”
Although the offering price was not stated, the share price of DCP closed at N300.10 per share on Friday, July 7, 2023 when the notice was published.
Meanwhile, the Company’s Head, Investor Relations, said, appointed Stockbrokers will offer the stock for sale during the offer period at their discretion.
“The Company through its appointed Stockbrokers will at its discretion purchase DCP’s shares in the open market over the duration of Tranche I, subject to prevailing market conditions and under the current daily trading rules of the NGX. DCP would however, not be under any obligation whatsoever to purchase any or all of the DCP shares put on offer over the duration of Tranche I.
“The shares being bought back by the Company under the Share Buy-Back Programme will be held as treasury shares, as permissible under CAMA. Execution of this Tranche I is not expected to have any material impact on the Company’s financial position. Dangote Cement shareholders seeking to participate in Tranche I of the Share Buy-Back Programme are hereby 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. DCP will provide weekly updates on the progress of Tranche I of the Programme on its website over the duration of this tranche.
“The Company will continue to monitor the evolving business environment and market conditions, in making decisions on subsequent tranches of the Share Buy-Back Programme,” Aduroja stated.
He warned shareholders and investors to exercise caution when dealing in the securities of Dangote Cement until the completion of Tranche I of the Share Buy-Back Programme, adding that announcement will be published upon completion of Tranche I of the Programme.
