Desire of the Management of Dangote Cement to ‘buy back’ 10 per cent of its entire issued shares from shareholders was unanimously granted on Wednesday as the company’s shareholders’ voted in support of the ‘share buy back’ plans. Dangote Cement, which currently has 17.04 billion fully paid up ordinary shares of 50 kobo each, would be buying back 1.70 billion shares.
All the shareholders who spoke at the event lauded Aliko Dangote led Management for coming up with another scheme that will both enhance the share value of the company and also ensure more returns on their investment.
National Coordinator of the Independent Shareholders Association, Sir Sunny Nwosu said Nigerian shareholders will forever appreciate the “share buyback” plan of the company especially at this time of the year.
According to him: “I think Alhaji Aliko Dangote is learning from Microsoft, where Bill Gates also buy back shares of Microsoft. I want to sincerely congratulate Aliko on this noble idea. In 2008, Independent shareholders Association 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 gave back anything positive to the shareholders. The ‘share buy back’ was practiced in Ghana with just 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 dividend for the shareholders”
In the same vein, President of Authentic Nigerian Shareholders Association, Alhaji Mohammed Audu, described Dangote as a God-sent and expressed hope that the money realized from the “share buy back” by the shareholders will be used for investment purposes. He said: “Aliko Dangote does not need this money. He is taking this decision because of the shareholders. The share buy-back will ensure that the value of our share will go up and we are also sure of getting better dividend. 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.”
The shares will be repurchased out of the profits of the company and such number of shares bought under the programme is required to be cancelled in accordance with the Securities and Exchange Commission rules and the Nigerian Stock Exchange Rulebook 2015, which will consequently lead to a reduction in issued share capital.
It said the share buy-back was going to be on terms and conditions determined by the board of directors.
The buy-back programme will be completed within 12 months from the today.