Africa’s richest man, Alhaji Aliko Dangote has raked in $350 million (N107 billion) in just 24 hours for selling 3.23% stake to foreign investors.
According to market reports, the cement maker sold 550 million shares at N225.7 each in a one-off stock market deal valued at $350 million (N107 billion). Although details of the investor(s) are currently not available, but the buying offer was coordinated by CSL Stockbrokers Ltd.
Dangote Cement Limited (DCL) is the biggest company on the Nigerian Stock Exchange (NSE). Its stock value is one-third of the market’s total capitalization.
The shares of DCL was listed on the Nigerian Stock Exchange (NSE) in October 2010 at a price N135 per share. As at close of trade on December 19, 2017, its price stood at N238.99 per share.
Also, the business accounts for over 75 percent of Dangote’s wealth. Within the last five years, Dangote Cement has expanded to nine other African countries.
The deal is expected to increase the market capitalisation of NSE and positively impact on the end of year results of the bourse.
Why is Dangote selling his stake in the cement business?
Africa’s biggest cement maker has been selling small stakes to increase its free float (a number of his shares that could be traded on the stock market). On July 2017,128.5 million of its shares were sold at N210 each.
A similar deal was also struck with an unknown foreign investor in August. Dangote sold 416 million shares (2.3%) of its cement subsidiaries to a foreign investor for $236 million (N86.1 billion).
Dangote is currently shielding some weight in his investment portfolio to accommodate his proposed refinery business. Market analysts also noted that he may be transferring some risks in his businesses to other willing investors with these deals.