By Goddy Egene

 

Dangote Cement Plc, comprising Benue Cement Company Plc and former Obajana Cement Company Limited, has reported a turnover of N146.5 billion and a profit of N76.93 billion for the third quarter ended September 30, 2010. Based on the impressive performance and in line with its robust dividend policy, directors of the company have proposed an interim dividend of 200 kobo per share for the shareholders.

 

A statement from the company yesterday said that turnover rose by 37 per cent from N91.3 billion in 2009 to N146.5 billion in 2010, while profit before tax and after tax rose by 39 per cent and 40 per cent to N76.93 billion and N75 billion respectively. The company explained that cement sales volume for the enlarged entity closed the nine months 35 per cent higher than the corresponding period of 2009.

 

“The increase in sales volume is attributable to increased production at both Obajana and Gboko manufacturing plants. The result is significant coming at a period when the enlarged Dangote Cement, the country’s biggest cement maker, plans to sell a 20 per cent stake through a global share offering in the next 18 months as it gears up for a construction boom in Africa,” the statement said.

 

The shares of the enlarged Dangote Cement will be formally listed on the Nigerian Stock Exchange (NSE) next Tuesday. About 100 million units of the shares would be sold to investors on the floor of the NSE on the listing day. The new company is expected to add N2.1 trillion to the market capitalisation of the NSE.

 

Meanwhile, Chief Operating Officer of the company, Mr. Kunle Alake, said the NSE had given the firm two years to sell down a 20 per cent stake in the newly listed entity in order to comply with the minimum 25 per cent free float requirement.

 

“The planned share offering will be one of the biggest ever by an indigenous company in sub-Saharan Africa. Preferably within 18 months I think we should be able to complete the exercise.There would be a global offering most likely within the next 18 months,” said Alake.According to him, share offering would be an offer for sale as Dangote Industries Limited will be divesting 20 per cent to meet the listing requirement.

 

Source: ThisDay