Dangote Cement Plc has begun its share buy-back program. The program was approved on 21 January 2020 by the Company’s shareholders at the Extraordinary General Meeting of DCP
This is said to be the first share buyback in Nigeria’s stock market history.
The Share Buy-Back Program based on the notification is in line with the framework provided under Rule 398 (3)(xiv) of the Securities and Exchange Commission’s (“SEC”) Rules and Regulations (as applicable) and following Rule 13.18 of the Rulebook of the Nigerian Stock Exchange (“The NSE”).
The shareholders’ have fixed the number of shares to be repurchased under the Share Buy-Back program at not more than 10% of DCP’s issued capital.
The program will be segmented as the first tranche under the Company’s share buy-back program will begin on the 30th of December 2020 and completed on the 31st of December 2020.
Approved brokers of the company during this period would buy over 85,202,537 fully paid-up ordinary shares of 50 Kobo each, representing 0.5% of the entire current issued shares of 17,040,507,404 ordinary shares.
The first tranche under the Company’s Share Buy-Back Programme will be carried out by Meristem Stockbrokers Limited and Vetiva Securities Limited. The stockbrokers will, at their volition buy DCP Shares in the open market between 30th and 31st December, subject to prevailing market conditions and under the current daily trading rules of the NSE.
The shares being bought back by the Company under the Share Buy-Back Programme will be kept as treasury shares, and may afterward be cancelled. Execution of this Tranche I will not have any material impact on the company’s financial position.