Dangote Cement says it has plans to buy back 10% of its issued shares.
In a notice filed on the Nigerian Stock Exchange, the company said the programme will cover 1.7 billion shares out of its total 17.04 billion ordinary shares of 50 kobo each.
The programme is scheduled to be completed within twelve months from the date of receipt of the approval of shareholders for the programme
“Unless required by law or directed by appropriate regulatory authority, the company may cancel such number of issued shares repurchased, or otherwise acquired under the proposed transaction as confirmed by the company’s registrar and diminish the amounts of its share capital by the amount of its shares so cancelled, in accordance with all applicable laws and regulations,” it said.
“The shares will be repurchased out of the profits of the company and such number of shares bought under the programme is required to be cancelled in accordance with the Securities and Exchange Commission rules and the Nigerian Stock Exchange Rulebook 2015, which will consequently lead to a reduction in issued share capital.
“Following the amendment of the company’s articles, that the company undertakes a share buyback of up to 10% of its issued shares, on such terms and conditions and at such times as the board of the directors deems fit.”
Listing the justification for the programme, Dangote Cement said it would increase long term shareholder value, a valuable tool for managing the capital structure and balance sheet efficiency, window to return cash to shareholders.