By Dipo Olowookere
The board of Dangote Cement Plc has been authorised to re-activate the share buyback programme, which commenced last year, Business Post reports.
The approval for the commencement of the second tranche of the scheme was given at the Annual General Meeting (AGM) of the organisation held on Wednesday, May 26, 2021, in Lagos.
Dangote Cement is planning to pay cash to shareholders of the company in exchange for 10 per cent of the total shares outstanding of the firm in their possession. This transaction is being done in tranches.
In the first tranche, which commenced on December 30 and ended on December 31, 2020, Dangote Cement bought back 40.2 million shares at an average price of N243 per unit, representing 0.24 per cent of the company’s issued and fully paid ordinary shares of 17.0 billion units. The value of repurchased stocks in the first tranche was N9.8 billion.
On Thursday, Dangote Cement gave an update that it would buy more stocks under the scheme soon.
“This is to announce that the Annual General Meeting (AGM) of Dangote Cement Plc was held on May 26, 2021, at Eko Hotel and Suites, Victoria Island, Lagos.
“At the AGM, the shareholders passed a special resolution renewing the share buyback programme, on such terms and conditions and within such timelines as the board of directors may determine, subject to obtaining requisite regulatory approvals.
“Dangote Cement Plc had established this programme pursuant to a resolution of the company on January 22, 2020, for the repurchase of up to 10 per cent of its total issued shares from the shareholders.
“However, the COVID-19 pandemic had made it challenging to fully implement the programme as planned. With the stabilisation of the stock market and improvement in economic conditions, the board of directors consequently decided that it is in the best interest of the company to undertake further tranches of the programme,” the notice signed by the Deputy Company Secretary, Mr Edward Imoedemhe, stated.
Shares of Dangote Cement went down by N6 or 2.86 per cent today at the stock market to close at N204 per unit compared with N210 per unit they ended on Wednesday.
A total of 507,348 units of the stocks were traded by investors during the session, higher than the 314,829 units transacted at the preceding trading day.
Adedapo Adesanya