Dangote Cement begins second tranche of its shares buyback.
Dangote Cement Plc (DCP) has announced the commencement of the second tranche of its shares buyback programme (Tranche II) approved by its shareholders on May 26, 2021.
This is contained in a notice signed by Mr Edward Imoedemhe, the Deputy Company Secretary, and posted on the website of the Nigerian Exchange (NGX) Ltd. on Wednesday, in Lagos.
According to the notice, the Tranche II share buyback programme was within the framework provided under Rule 398 (3) (xiv) of the Securities and Exchange Commission’s (SEC) Rules and Regulations (as applicable).
The programme was also in accordance with Rule 13.18 of the Rulebook of the NGX.
It said that based on the May 26 shareholders’ approval, the number of shares to be repurchased under the share buyback programme would not exceed 10 per cent of DCP’s issued capital.
The programme was being effected in tranches, with Tranche II being executed by the appointed stockbrokers on the company’s behalf.
The details of the Tranche II share buyback programme included; current shares issued, 17,040,507,404 fully paid-up ordinary shares of 50k each;
In addition, the Tranche size would be up to 170,003,074 fully paid-up ordinary shares of 50k each, representing 1 per cent of the currently issued shares,, less treasury shares; commencement/completion date, Jan. 19 to 20, to be traded in the open market of the NGX.
It explained that through its appointed stockbrokers, the company would, at its discretion, purchase DCP’s shares in the open market over the duration of Tranche II.
This, according to the notice, was subjected to the prevailing market conditions and under the current daily trading rules of the NGX.
“DCP would, however, not be under any obligation whatsoever to purchase any or all of the DCP shares put on offer over the duration of Tranche II.
“The shares being repurchased by the company under the Share Buy-Back Programme will be held as treasury shares and may subsequently be cancelled.
“The execution of this Tranche II is not expected to have any material impact on the company’s financial position.
“Dangote Cement shareholders seeking to participate in Tranche II of the share buyback programme are hereby advised to contact their stockbrokers or any other independent professional adviser registered as a capital market operator by SEC for further guidance on the submission of trades on the NGX’s trading platform.
“DCP will provide weekly updates on the progress of Tranche II of the programme on its website over the duration of this tranche.
“The Company will continue to monitor the evolving business environment and market conditions in making decisions on further tranches of the Share Buy-Back Programme,” the notice said.
It also advised shareholders and investors to exercise caution when dealing in the securities of Dangote Cement until the completion of Tranche II of the share buy back Programme.
It further said that an announcement would be published upon completion of Tranche II of the programme.