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Dangote Cement Executes Share Buyback Programme

Dangote Cement Plc has announced the commencement of its share buy-back programme. The company explained in a statement made available to the Nigerian Stock Exchange (NSE) on Monday that the exercise will be executed under the approval granted by its shareholders at an Extraordinary General Meeting, which held on January 21, 2020, within the framework provided by the Securities and Exchange Commission (SEC) as well as the NSE.

It stated that the exercise will be done in the open market on December 30 and would end the following day or when the entire target number of shares are repurchased, “whichever is earlier.”

According to the company, the number of shares to be repurchased under the programme would not exceed 10 per cent of Dangote Cement Plc’s issued capital, starting with a first tranche of 85.2 million shares of 50 kobo each, or 0.5 per cent of the total in issue.

“The programme will be effected in tranches, with Tranche I being executed by the appointed stockbrokers on the company’s behalf.

“The company through its appointed stockbrokers will at its discretion purchase Dangote Cement shares in the open market over the duration of Tranche I, subject to prevailing market conditions and under the current daily trading rules of The NSE,” it stated.

The cement manufacturer explained that the shares being bought back would be held as treasury shares and may subsequently be cancelled.

“Execution of this Tranche I is not expected to have any material impact on the company’s financial position.

“Dangote Cement shareholders seeking to participate in Tranche I 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 submission of trades on The NSE’s trading platform,” it added.

The company stated that it will provide weekly updates on the progress of first tranche of the programme on its website over the duration of this tranche, adding that the company will continue to monitor the evolving business environment and market conditions, in making decisions on further tranches of the programme.

Obinna Chima

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