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UPDATE 1-Nigeria's Dangote Cement mulls open tender for share buyback, eyes export growth

Published 27/07/2020, 17:17
© Reuters.

(Adds details)
By Chijioke Ohuocha
ABUJA, July 27 (Reuters) - Nigeria's biggest listed company
Dangote Cement DANGCEM.LG is considering an open tender for a
share buyback to return cash to shareholders and is deciding on
the size of the programme, its chief executive said on Monday.
Michel Puchercos told an analysts' call the cement company
could also conduct a market price buyback as part of options. He
did not say how the buyback will be funded but added that the
programme was dependent on liquidity.
Dangote Cement, majority-owned by Africa's richest man Aliko
Dangote, said in March it planned to commence a share buyback
programme this year once it had obtained regulatory
approval. Pucheros said the upper limit of the buyback volume was 10%
of its 17.04 billion registered shares and the company could
offer a 5% premium to the existing price in a market price
buyback, he said.
Dangote Cement rose 5.66% on Monday to 141 naira, valuing
the cement firm at 2.4 trillion naira ($6.3 billion).
Shares in Dangote Cement, which hit a peak in January is
recovering from a 16-week low it touched during a lockdown
imposed in April to curb the spread of the novel coronavirus.
The gains in Dangote Cement lifted the main share index
.NGSEINDEX 1.46% on Monday to a four-week high.
The company said the lockdown affected its April numbers
which had seen some recovery in May and June as restrictions
eased.
Dangote Cement said it planned to focus on export expansion
in West and Central Africa from Nigeria. It shipped clinker to
Senegal in June from Nigeria and plans to ship to Central Africa
in the second half.

($1 = 380.5000 naira)

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