The stock price of Dangote Cement Plc hits 2022 high yesterday amid the management proposed plans to repurchase 170,003,074 ordinary fully paid-up ordinary shares of 50kobo each from shareholders in the second tranche of its share buyback programme.
The buyback presents one per cent of the currently issued shares.
Bullish sentiments returned to the stock market of the Nigerian Exchange Limited (NGX), as investors’ interest in Dangote cement advanced the All-Share Index by 1.7 per cent to close at 44,608.82 basis points yesterday.
The stock price of Dangote Cement upon the announcement gained 6.2 per cent to close at N275 from N259 it opened for trading.
However, Deputy Company secretary, Dangote Cement, Edward Imoedemhe, in a statement on the NGX yesterday said the programme will run from January 19 to January 20 or when the entire shares have been repurchased.
A buyback is when a corporation purchases its own shares in the stock market.
The cement manufacturing company said it would be repurchasing 170 million ordinary shares of 50 kobo each, representing one per cent of the company’s issued shares.
According to the company, this includes 40.2 million shares held as treasury shares, following the conclusion of Tranche I of the share buyback programme.
It said the transaction would take place at the open market on the Nigerian Exchange Limited (NGX), subject to prevailing market conditions and under the current daily trading rules of the NGX.
It also appointed Meristem Stockbrokers Limited and Vetiva Securities Limited as stockbrokers for the second tranche of the programme.“Through its appointed Stockbrokers, the Company will, at its discretion, purchase DCP’s shares in the open market over the duration of Tranche II, subject to prevailing market conditions and under the current daily trading rules of the NGX,” the statement reads.“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 II.“The shares being repurchased by the company under the Share Buy-Back Programme will be held as treasury shares and may subsequently be cancelled. Execution of this Tranche II is not expected to have any material impact on the company’s financial position.“Dangote Cement shareholders seeking to participate in Tranche II of the Share Buyback 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 […]