Reports from Reuters suggest foreign investors have bought a 2.3% stake in Dangote Cement for N86.1 billion. The transaction was confirmed by a spokesman for the Dangote group and Nigerian Stock Exchange (NSE).
Here are highlights of the deal:
- 416 million shares were traded in six off market deals. An off market deal is one that does not take place in the open trading session.
- The transaction was between Dangote Industries Limited (DIL) and and foreign investors.
- Stockbrokers involved in the transaction were Meristem Securities and Stanbic Ibtc stockbrokers
- DIL is the investment vehicle through which Aliko Dangote holds a controlling stake in Dangote cement and other companies that make up the Dangote group.
- The shares were traded at N210, bringing the total value of the transaction to N86.1 billion or $236 million.
Despite the sale, Dangote Industries Limited maintains a controlling stake in Dangote cement. Previous bloc sales were made in 2013 to South Africa’s public Investment Corporation for $289.3 and 2014 to Emirati investors for $300 million respectively.
While DIL has not issued a statement on the deal, several analysts believe the funds will be applied to various projects by companies within the group. Dangote cement had recently unveiled plans to expand capacity of several of its plants across Africa. The Dangote group has also unveiled plans to go into milk production in 2019. The Dangote group is currently constructing one of the biggest refineries in Africa, with an estimated completion date of 2019. Dangote Cement today closed N273 up 35% over year to date on the NSE.
so Dangote Cement is worth 3.8 trillion in naira?