Dangote Industries Limited (DIL) has sold an additional stake in Dangote Cement to investors based in Dubai. 128.7 million shares were sold at a price of N210 per share with an estimated value of N27 billion. DIL is the investment vehicle through which Aliko Dangote maintains a controlling stake in Dangote Cement and other companies within the Dangote Group.

DIL, had in August 2017 sold 416 million shares to foreign investors in a deal valued at N88.1 billion. DIL had in 2013 sold a 1.5% stake in Dangote Cement to South Africa’s Public Investment Corporation (PIC) for $289.3 million and a 1.4% stake in Sovereign Fund Investment Corporation of Dubai in 2014 for $300 million. Dangote Cement shares closed at N238 in yesterday’s trading session on the Nigerian Stock Exchange (NSE) up 3.93%. Year to date the shares, are up 36.7%.

Implications of the deal

The equity sales brings the company closer to meeting the free float requirements of the NSE. Dangote Cement is expected to have a free float of 20%, but was given a waiver on its listing. DIL has currently sold about 5.2% of its stake, but still maintains majority shareholding.

Dangote Cement is a fully integrated cement company with operations in Nigeria and 14 other countries. The company is one of Africa’s largest cement producers. results for the 9 months ended September 2017 show revenue increased from N442 billion in 2016 to N603 billion in 2017. Profit before tax also increased from N148 billion in 2016 to N220 billion in 2017.

What's your say?

This site uses Akismet to reduce spam. Learn how your comment data is processed.