Business

Dubai investors snap up N27bn equity stake in Dangote Cement

Foreign investors today at the Nigerian Stock Exchange (NSE) struck a deal for 128.99 million shares of Dangote Cement valued at N27 billion.

The deal, which was struck through Meristem Securities Limited, a Lagos-based dealer at the Exchange, enlivened the stock market.

The deal lifted the overall value of trading in the market to N30.023 billion shares invested in 336.335 million shares in 3,778 deals.

Dangote Cement alone accounted for N27.082 billion staked on 129.923 million shares in 238 deals, which is about 90 per cent of the day’s transaction value.

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Reliable sources indicated that the investors were from Dubai, United Arab Emirates (UAE).

Today’s transaction comes barely three months after some foreign investors bought 2.3 per cent stake in Dangote Cement with N86.1 billion for 416 million shares.

Earlier, two other foreign investors had bought into Dangote Cement. In 2013, South Africa’s Public Investment Corporation (PIC) bought 1.5 per cent for $289.3 million. Similarly, in 2014, Sovereign fund Investment Corp of Dubai (ICD) acquired 1.4 per cent for $300 million.

Africa’s largest cement company and Nigerian multinational-Dangote Cement recently withdrew from its bid to acquire the entire share capital of PPC Limited-a South African leading cement firm.

In a statement signed by Dangote Cement’s company secretary, Mahmud Kazaure the company stated that the Aliko Dangote-led board of directors of Dangote Cement has communicated its withdrawal of interest to acquire the entire share capital of PPC to the board of directors of the South African firm.

 

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