Dangote Cement Plc has bought back approximately N41.2 billion worth of its shares from open transactions at the stock market. The company repurchased about 0.71% of its issued share capital under the first tranche of the share buyback program, aiming to reduce its issued shares by 10%.
The total number of repurchased shares was 121.40 million ordinary shares at an average price of N339 per share, falling slightly short of the initial target.
The completion of the first tranche of the buyback program resulted in a reduction of the total number of issued and fully paid outstanding shares to 16.75 billion.
Shareholders had approved the new share buyback scheme at an extraordinary general meeting in December 2022, allowing the company to repurchase up to 10% of the group’s issued capital.
Opinion: Dangote Cement’s share buyback program reflects the company’s commitment to enhance shareholder value and confidence. By repurchasing a portion of its shares, the company aims to strengthen its financial position and signal its belief in its long-term growth prospects. The sustained growth in major indices, including turnover and gross profit, demonstrates the company’s resilience despite facing challenges like increased operating expenses and finance costs. With a stronger balance sheet and continued focus on growth, Dangote Cement is positioned to navigate the evolving market dynamics successfully. As the share buyback program progresses, investors will likely closely monitor the company’s strategic moves and future performance.