Dangote Cement Seeks Shareholders’ Approval to Buy Back Shares

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Goddy Egene
Dangote Cement Plc is seeking shareholders’ approval to embark on share buy-back in move aimed at improving return on equity and shareholder value. In a notification to the Nigerian Stock Exchange (NSE), the cement company said it would convene an extra-ordinary general meeting (EGM) of shareholders for January 22, 2020, to amend its Articles of Association to enable it undertake a share buy-back of up to 10 per cent of its issued shares on such terms, and conditions and at such times as the board of directors deems fit.

According to Dangote Cement, the programme was in line with the company’s corporate strategy to improved its return on equity, and shareholder value in order to future long term growth.

“The relevant shares will be repurchased out of the profits of the company and any such number of shares bought under the programme is required to be cancelled in accordance with the Securities and Exchange Commission (SEC) rules and the NSE rule book which will consequently lead to a reduction in issued share capital,” the company said.

Dangote Cement Plc has been adding value to shareholder value, paying dividend regularly. For instance, it paid N16 dividend per share for 2018 financial.

And the chairman of the company, Alhaji Aliko Dangote said the shareholders and staff were bedrock of the company and expressed optimism on the prospects of the company.

According to him, the company will be effectively operating in a minimum of 18 African countries in a short while by increasing the capacity of its Obajana Plant to 16 million metric tons, making it one of the biggest cement plant in the world.

Meanwhile, the management of the Dangote Cement Plc has announced the appointment of Michel Puchercos as the new managing director of the company. The MD’s appointment becomes effective on February 1, 2020.

Puchercos is coming from rival cement company, Lafarge Africa Plc. Puchercos served the company as an executive director on the board since April 1, 2016. According to Lafarge during his tenure as the GMD/CEO, Puchercos implemented a successful turnaround plan for the business, addressing the legal, financial and management structure of the company, health and safety improvements and the implementation of new operating processes.

Puchercos has over 20 years’ experience working in the cement industry, serving in various capacities at Lafarge.