Dangote Cement to acquire 168 million shares in share buy-back program

Dangote Cement has completed its two-day Tranche 1 share buyback program. 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.

It would be recalled that the cement giant recently unveiled the implementation of advanced technology aimed at preventing environmental pollution caused by dust emissions from its Obajana factory and other operational facilities.

Dangote Cement's share buy-back program

A share repurchase program, alternatively referred to as a stock buyback program, is a tactic utilized by a company to acquire its own shares either from the open market or directly from existing shareholders.

The share buyback initiative is driven by the goal of enhancing long-term shareholder value.

Moreover, this undertaking is anticipated to assist in the ongoing capital structure and balance sheet optimization efforts of the cement manufacturer.

In this approach, the company utilizes its existing cash reserves or secures funds through borrowing to repurchase outstanding shares.

The acquisition of shares will be carried out from the open market at the Nigerian Exchange Group (NGX).

Subsequently, these repurchased shares will be held as treasury shares, ensuring adherence to the regulations stipulated by CAMA (Companies and Allied Matters Act), the company stated in a press release.