Dangote cement’s shareholders approved buy-back share

The management of Dangote Cement has been given unanimous approval by the company’s shareholders to repurchase up to 10% of the company’s issued shares starting on the day the resolution was passed.

The corporation had previously expressed interest in implementing a share buyback program for up to 10% of its issued shares in order to increase shareholders’ value and the company’s return on equity in order to support long-term company growth.

The shareholders who participated in the voting at the company’s Extraordinary General Meeting in Lagos gave their unanimous approval, with many of them praising the process and considering it beneficial to all parties involved.

The shareholders agreed, among other things, to change the company’s “Memorandum and Articles of Association (as applicable) to reflect the company’s share capital, following the cancellation (if any) of the shares bought and/or otherwise retained by the business” once the share buyback was completed.

The Board was also given the authority to see to it that the cancellation (if any) of the shares the company had bought and/or otherwise owned was reflected in the company’s share capital when the company’s articles of association were amended.

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It should be mentioned that the Shareholders recently applauded the Company’s Management for an exceptional performance despite the economic problems in the year under review at the 13th Annual General Meeting (AGM).

They unanimously agreed to pay N20 per share for the fiscal year ending December 31, 2021, as opposed to the N16 paid the year before. This demonstrated the company’s dedication to enhancing shareholder value by representing a 25% increase in dividends compared to the 2020 payout of N16.00 per share. They praised the business for trying to get rid of any unclaimed dividends.

Dangote Cement had its largest profit before taxes ever in the year under review, coming in at N538.4 billion. The Company also reported Group volumes of 29.3Mta, an increase of 13.8 percent. Due to effective cost control methods, an exceptional EBITDA of N684.6 billion was achieved, up by 43.2 percent.

Chairman of the company, Aliko Dangote, said that “Over the last decade, Dangote Cement has recorded exponential growth across all areas.” According to him, “Group volumes are now at almost 30Mta, our capacity has tripled to 51.6Mta and we export cement from five countries across Africa.”

“As the volatile global environment propels us into a new era of uncertainties, we are fortunate that the last two years have taught us resilience, adaptability, and grit. These values are what we need to face in unpredictable times in the future.

“Dangote Cement remains the leading cement company in Africa, well-positioned for a positive and sustainable future. We are resolute in transforming Africa while creating sustainable value for our stakeholders,” Dangote added.