Dangote Cement, one of Nigeria’s leading cement manufacturers, has successfully completed the first tranche of its share buyback program, as announced earlier in July. The company filed a corporate notice on the Nigerian Exchange Limited (NGX) on Thursday, confirming the completion of the first tranche, which commenced on Monday and concluded on Tuesday through open market transactions on NGX.
During the first tranche, Dangote Cement repurchased a total of 121,404,714 shares, representing 0.71 per cent of the company’s issued and fully paid ordinary shares. The total value of the repurchased shares amounted to N41.155 billion, with an average price of N339 per share. Following the successful completion of tranche I, the total number of issued and fully paid outstanding shares of Dangote Cement now stands at 16,752,154,537.
The company stated that the repurchased shares will be held as treasury shares and may potentially be canceled at a later date. Share buybacks are a common financial strategy used by companies to return excess capital to shareholders, improve shareholder value, and signal confidence in the company’s financial performance and prospects.
Dangote Cement’s 2022 financial year report demonstrated its robust financial performance, with revenues totaling N1.62 trillion, an increase from N1.38 trillion recorded in the previous year (FY 2021). The company also reported a net profit of N382.31 billion for the financial year 2022, compared to N364.44 billion in FY 2021.
The completion of the first tranche of the share buyback program is likely to have a positive impact on investor sentiment, reflecting the company’s commitment to enhancing shareholder value and its confidence in its future growth prospects. The buyback program reinforces Dangote Cement’s position as a key player in Nigeria’s cement industry and underscores its dedication to maintaining a strong and stable financial position.
As Dangote Cement continues to implement its business strategy and expand its operations, the successful execution of the share buyback program sends a reassuring message to investors and stakeholders alike. With a solid financial performance and ongoing commitment to shareholder value, the company remains poised for sustained growth and success in the Nigerian and regional markets.
