Dangote Sells Cement Business To Foreigners
Even Africa’s richest man needs more money.
On Tuesday, Dangote Industries Limited sold 2.3% stake in Dangote Cement Plc to foreign investors in a stock market deal valued at 86.1 billion Naira.
Africa’s biggest cement maker has been selling small stakes to increase its free float, which is well below the Nigerian Stock Exchange’s required level.
Reuters, on Tuesday, quoted a spokesman for the NSE as saying that 416 million shares of Dangote Cement were sold at 210 Naira each in 6 off-market deals negotiated between Stanbic IBTC and Meristem Stockbrokers.
The price was below Dangote Cement’s closing price on Monday of 223.75 Naira Shares in the company, owned by Africa’s richest man, Aliko Dangote, jumped after news of the share sale, closing up 7.3% at 240 Naira, valuing the company at 4.09 trillion Naira ($11.2 billion).
A spokesman for the cement maker told Reuters that the deal was between Dangote Industries Limited and some foreign investors, whom he did not identify.
The transaction increases Dangote Cement’s free float to 10.4%, according to Thomson Reuters’ calculations, still well below a stock market requirement of 20 %.
But it remains the biggest company on the NSE, accounting for a third of the bourse’s total market capitalisation, and when it listed in 2010 the bourse waived its free float requirement because it wanted to encourage more companies to list.