Meristem Facilitates N27bn Investment in Dangote Cement


The value of trading soared to N30.023 billion invested in 336.335 million shares in 3,778 deals, up from the N2.646 billion invested in 175.276 million shares last Friday.

However, the boost in value of trading came from N27 billion staked on about 128.992 million shares of Dangote Cement Plc by foreign investors monday.

THISDAY checks showed that the investors, who are from Dubai, invested in Dangote Cement at an agreed price of N210 per share. The purchase price was a discount on the N229.01 opening price of stock for the day. But the shares rose 3.93 per cent to close at N238 per share, thereby contributing to the positive close recorded by the Nigerian Stock Exchange (NSE) All-Share Index (ASI). The index appreciated by 0.52 per cent to be at 37,312.28. Ex-Dangote Cement, the market would have declined by 1.0 per cent.

Meanwhile, market operators said the foreign investment in Dangote Cement yesterday was facilitated by Meristem Securities Limited and this transaction is coming three months after some foreign investors similarly bought 2.3 per cent stake in Dangote Cement Plc for N86.1 billion. That sale involved 416 million shares.

Two other foreign investors had bought into Dangote Cement Plc in 2013 and 2014. In 2013, South Africa’s Public Investment Corporation (PIC) bought 1.5 per cent for $289.3 million. Similarly, in 2014, Sovereign fund Investment Corp of Dubai (ICD) acquired 1.4 per cent for $300 million.

Last August when the N86.1 billion invested in Dangote Cement, a leading stockbroker and Managing Director of Highcap Securities Limited, Mr. David Adonri had said it was good development for both the company and the Nigerian economy.

“As you are aware, Dangote Cement is a multinational entity. It is capable of eliciting global interest. New foreign investment can be viewed from the perspective that the company is performing very well and that the Nigerian economy is providing it with necessary enabling environment,” he said.

Dangote Cement has been rewarding shareholders with regular dividends. For the year ended December 31, 2016, the company recorded a profit after tax of N187 billion and a dividend of N8.50 per share.

Chairman of the company, Alhaji Aliko Dangote had told shareholders that the company’s Pan-African diversification has provided cash streams from countries such as Senegal, Cameroon and Zambia, which provided them with essential foreign currency as foreign exchange controls in Nigeria impacted on the company’s operations in that year.