Dangote Cement PLC (DANGCEM) recently published a corporate action which stipulates that the company will hold an Extraordinary General Meeting (EGM) on the 22nd day of January 2020 at Zinna Hall, Eko Hotels & Suites, to deliberate and seek shareholders approval on its proposed shares buyback programme and other pending issues.
According to the corporate action obtained from the Nigerian Stock Exchange (NSE), DANGCEM intends to embark on its buyback programme running for a twelve-month period from the day a special resolution is obtained from shareholders, purchasing 10% from permittable 15% in a fiscal year according to the Security and Exchange Commission (SEC) rules.
Furthermore, with a special resolution passed by shareholders, DANGCEM indicates it will be pricing the shares at a maximum 5% premium of an average of five preceding trading days market price. The scheme according to DANGCEM will be carried out via an open market/self-tender offer.
This implies that DANGCEM with a share outstanding of 17,040,507,405 will absorb in its buyback scheme 1,704,050,741 shares, consequently, cancelling these shares after ten trading days post-acquisition. Thereafter, at the completion of the scheme, DANGCEM shares outstanding will stand at 15,336,456,664.
DANGCEM intends to increase long term shareholder value, improve its balance sheet efficiency, enhance earnings and yields to its various shareholders by this programme.
