Shareholders of Dangote Cement Plc, on Wednesday unanimously gave their blessings to the board proposal to ‘buy-back’ up to 10% or 1.7bn units of its entire 17.04bn issued and fully paid-up ordinary shares of 50 kobo each from the stock market.
Shareholders who spoke at the event lauded the proposal, which they noted, will enhance the share value while ensuring juicier returns on investment.
The share buy-back scheme, the company said, will be on terms and conditions of the programme which will be completed within 12 months from the EGM date, as stated by the directors.
Speaking at the meeting, for example, National Coordinator Emeritus of the Independent Shareholders Association of Nigeria, Sir Sunny Nwosu, congratulated the company’s chairman, Alhaji Aliko Dangote for the noble idea.
The proposal, he noted, is coming almost 12 years after the ISAN, under his leadership, sponsored “a seminar on share buy-back because of its value and importance…
“As shareholders, we have been clamoring 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 deconstruction that is being practiced by some Nigerian companies which never gives back anything positive to the shareholders.
“The ‘share buyback’ was practiced in Ghana with just a 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 dividends for the shareholders,” he stressed.
Also speaking, President of Authentic Nigerian Shareholders Association, Alhaji Mohammed Audu, expressed hope that the money realized from the “share buyback” by the shareholders will be used for investment purposes.
“The share buy-back will ensure that the value of our share will go up and we are also sure of getting better dividends. 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,” he added.
The shares will be repurchased from the company’s retained earnings, after which the shares repurchased under the programme will be canceled in accordance with rules of the Securities and Exchange Commission and the Nigerian Stock Exchange Rulebook 2015, which will consequently lead to a reduction in issued share capital.
Dangote Cement had a total N731.15bn in retained earnings as of September 30.
Photo caption: Deputy Company Secretary, Dangote Cement Plc, Edward Imoedemhe; Chairman, Dangote Cement Plc, Aliko Dangote; and Group Managing Director/CEO, Dangote Cement Plc, Engr. Joseph Makoju at the company’s Extra-Ordinary General Meeting held in Lagos on Wednesday, January 22, 2020.