SEC approves renewal of Dangote Cement share buyback programme
By Kayode Tokede
The Securities and Exchange Commission (SEC) has approved the renewal of Dangote Cement Share Buyback Programme effective until the 21st of January, 2022.
According to a notice signed by the deputy secretary of Dangote Group, Edward Imoedemhe, the share buy-back programme will be executed under the approval granted by the Company’s shareholders at the recently concluded Annual General Meeting (AGM) of the company.
In line with the recent development, the notice stated that the share buyback will be undertaken through an open market offer or self-tender, at a period and term determined by the company, subject to prevailing market conditions.
The cement producing company had announced the commencement of its share buy-back programme, under the approval granted by the Company’s shareholders at the Extraordinary General Meeting of DCP.
This announcement was made in a notification issued on December, before the opening of the stock market.
It was also the first share buyback in Nigeria’s stock market history.
According to the notification, the Share Buy-Back Programme is in line with the framework provided under Rule 398 (3)(xiv) of the SEC Rules and Regulations (as applicable) and in accordance with Rule 13.18 of the Rulebook of the NGX.
Based on the aforementioned shareholders’ approval, the number of shares to be repurchased under the Share Buy-Back Programme will not exceed 10% of DCP’s issued capital.
The Programme will be effected in tranches, as the first tranche under the Company’s share buy-back programme will commence on the 30th of December 2020, and will be completed on the 31st of December 2020.
During this period, the approved brokers of the company would purchase up to 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 executed by Meristem Stockbrokers Limited and Vetiva Securities Limited, the appointed stockbrokers of the Company under the programme. The stockbrokers will at their discretion purchase 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 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.
