“On Thursday September 07 2010, the Council of the Nigerian Stock Exchange approved a merger between former Obajana Cement Plc and Benue Cement Company Plc (BCC); culminating to Dangote Cement Plc (DANGCEM)”.

 

In a short Question and Answer (Q & A ) session at the Special Sale of shares/listing by introduction of 15.5 billion Ordinary Shares of  50 Kobo each at N135.00 per share of Dangote Cement Plc (DANGCEM)  captured Tuesday October 26 2010  on  the Floor of the Nigerian Stock Exchange (NSE) in Lagos Nigeria by PETER OBIORA of investadvocate, Alhaji Aliko Dangote, President of the Dangote Group  discusses issues relating to the listing of DANGCEM and dividend payout to investors of the merged company.

 

Other issues discussed include, the company’s proposed Global Depositary Receipt (GDR), local sales of shares of the company and other plans. Excerpts:

 

Dividend payment to investors

 

We are going to do more by next financial year, also investors are not to buy into companies because of dividends alone. They have to also look at the growth of the company, where it is going to be at least for the next three years.

 

On dividend payout by Dangote Cement Plc, we have already given a N2.00 interim dividend for the third Quarter ended September 30 2010 to investors who would own these shares up to the November 16 2010 and based on calculations, we still have about N3.00 to go.

 

If we give out N5.00, it means that we are giving out N75 billion as dividend payout to shareholders of the company. We have already given N30 billion and I hope and pray that by the end of the year, we would be able to give out the balance of the N75 billion.

 

I affirm that we are going to pay up to N5.00 at the company’s financial year end; but we would be targeting more than that by subsequent years; so paying the N5.00 will not be an issue.

 

If we did not list for instance, it means that the N75 billion we are going to give out as dividend; would have gone to our private pockets; but right now, we are going to share it to other people. Therefore, I urge companies to come and list their shares on the Stock Exchange.

 

On Dangote Sugar Refinery

 

We would definitely expand its frontiers to other parts of Africa, the way we have done with Dangote Cement; also we would try and do something on our foods company to make the Dangote Group one strong Group. These are some of our plans and we would inform the Market as developments unfold.

 

Cost in terms of equity in the transfer of assets

 

When we get the arrangement done, we will call for an Extraordinary General Meeting (EGM) to let shareholders see exactly what Dangote Cement is going into and the assets would be first and foremost transferred to avoid any suspicion. We had affirmed that whatever we had paid so far. Our payment would be verifiable.

 

I want to state that whatever that has been paid by the Dangote Industries is what Dangote Cement will pay back. We are not going to value and sell the assets differently.

 

About the selling of the 25 percent, in order to comply as a newly listed entity with the NSE’s minimum free float requirement, we have done a sale now and would not do any other sale until we do our GDR and local sale of shares which would happen between now and the next 18 to 20 months.

 

If you do an analysis of the issue, the assets we have outside Nigeria, are not in this scheme of arrangement, this is coming as an addition on what we have done today. The shares that we have sold today and the ones we are trading which is about 4.1 percent; are the shares that we would be trading, we are not going to sell our shares.

 

I am not saying that we do not really need the money; we have been given two years of which to sell down and would not come back to bring in additional shares. We do not really have any business to do so, we will sell shares; but it will take maybe 18 months from now. I am sure if there are shareholders who would want to sell theirs, there are so many people who are ready to pick them.

 

We had wanted to sell 100 million units and we ended up selling 196 million units and I am sure there was no time. Dangote Cement didn’t do much advertisement’ because it is a secondary sale; which was the reason we didn’t sell more than 200 million units. Dangote Cement is to protect investors’ interest and we would try our best to do so.

 

 

EDITOR’s PICK:

 

Kunle Alake, Chief Operating Officer of the company had earlier confirmed to Reuters last week, that the NSE had given DANGCEM two years to sell down a 20% stake in the newly listed entity in order to comply with the minimum 25% free float requirement. And the company plans to do this through a global share offering in the next 18 months.

 

FACTS CHECK:

 

Dangote Cement Tuesday October 26 2010 listed by introduction 15,494,019,668 billion Ordinary Shares of 50 Kobo each at N135.00 per share.

 

 

 

End