Abdul Samad Rabiu purchases N3.8 billion BUA cement shares, Dangote acquires 16O million

Chairman of BUA Group, Abdul Samad Rabiu, has acquired an additional 45 million shares, estimated at N3.8 billion in the firm.

Reports say the buyback programme is contained in a notice of share dealings filed with the Nigerian Exchange Limited.

The 45 million share acquisition represents 0.13% of the firm’s total outstanding shares.

With the share buyback, Rabiu has increased his direct shareholding in the company from 19.044,995,225 as of December 31, 2022, to 19,089.995,225 units or 56,37%.

The billionaire owns direct shares via BUA Industries Limited, accounting for 39%, bringing his total stake to 96.12, valued at N3.22 trillion.

According to the notice signed by the company’s secretary, Hauwa Satomi, on July 25, 2023, the transaction was carried out on June 26, 2023.

Rabiu bought the 45 million units of shares at N85 per share.

An available report shows that the company’s 2023 first-quarter earnings indicate a pre-tax profit of N35.45 billion, representing a 16.79% decline from the N42 billion earned in 2022

The decline in profit was caused by the increased cost of sales of raw materials due to rising inflation and naira depreciation.

Revenue from cement products increased slightly by 9,6% to N106.35 from N97 billion achieved by the company in the corresponding period 2022.

The initiative entails the acquisition of 168,735,593 fully paid ordinary shares, accounting for 1% of the presently issued shares.

The share buy-back program commenced on Monday, July 17, 2023, with completion targeted within a two-day timeframe or until the entire tranche size is obtained.