Dangote Cement Plc has announced the commencement of the second tranche of the shares buyback programme. This comes after the company’s shareholders approved the move at the Annual General Meeting held in May 2021.
This was revealed in the company’s disclosure which was signed by the company’s secretary, Edward Imoedemhe and filed with the Nigerian Exchange Limited.
The second tranche of the programme entails that up to 170,003,074 fully paid-up ordinary shares of 50 Kobo each, representing 1% of the currently issued shares, less treasury shares will be repurchased.
The programme is scheduled to commence on the 19th Wednesday, January 2022 and should last for two days to be completed on the 20th Thursday, January 2022 or whenever the entire tranche size has been purchased.
It is important to note that the purchase of the shares will take place in the open market over the duration of the programme and will be subject to prevailing market conditions and under the current daily trading rules of the NGX.
The repurchased shares will however be held by the company as treasury shares.
Shareholders of Dangote Cement Plc who are willing to participate in the programme have been advised to contact their respective 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.
Backstory
Dangote Cement Plc ran its first share buyback programme (Tranche 1) in December of 2020 where the company repurchased a total of 40,200,000 units of shares representing 0.24% of the company’s issued and fully paid ordinary shares, at an average price of N243.0218 per share, valued at N9.77 billion.
The first tranche of the programme lasted for two trading days, commencing on Wednesday, December 30, 2020, and was completed on Thursday, December 31, 2020.
According to the disclosure, “The Company will continue to monitor the evolving business environment and market conditions in making decisions on further tranches of the Share Buy-Back Programme.”
