Shareholders of Dangote Cement Plc yesterday unanimously approved the proposal of the company to buy back 10 per cent of its shares. In line with its corporate strategy to improve its return on equity and shareholder value, the board of Dangote Cement Plc proposed the share buy-back programme that would allow for the purchase of 1.70 billion shares out of the 17.04 billion fully paid up ordinary shares of 50 kobo each.
At the extra-ordinary general meeting (EGM) held in Lagos, the shareholders endorsed the proposal and commended the board and management, saying it would enhance their value in the company.
For instance, the founding National Coordinator of the Independent Shareholders Association, Sir. Sunny Nwosu said Nigerian shareholders would forever appreciate the share buy-back plan of the company especially at this time of the year.
“I think Alhaji Aliko Dangote is learning from Microsoft, where Bill Gates also buy back shares of Microsoft. I want to sincerely congratulate Aliko on this noble idea. In 2008, ISAN sponsored a seminar on share buy-back because of its value and importance. As shareholders, we have been clamouring for share-back for so many years and today Aliko Dangote has given us hope.
“This is very good as against the practice of share reconstruction that is being practiced by some Nigerian companies which never gave back anything positive to the shareholders. The share buy- back was practiced in Ghana with just few companies listed on its exchange .
“We are indeed very happy with this and we are also quite sure that with this that you have done today, you have proved yourself to be the best chairman of all the corporate companies in Nigeria. We will not disappoint you.We are very delighted because we know that this arrangement will lead to share price increase and more dividend for the shareholders,” he said.
Another shareholder, Alhaji Mohammed Audu described Dangote as a God-send and expressed hope that the money realised from the share buy-back by the shareholders will be used for investment purposes.
He said: “Aliko Dangote does not need this money. He is taking this decision because of the shareholders. The share buy-back will ensure that the value of our share will go up and we are also sure of getting better dividend. So, as you can see, all the shareholders here today voted unanimously in support of the motion. We voted for it and also thank Aliko Dangote for making us richer.”