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Dubais ICD buys 300m stake in Dangote Cement
(MENAFN- Arab News) LAGOS/DUBAI: Sovereign fund Investment Corp. of Dubai (ICD) has bought a 1.4 percent stake in Dangote Cement Nigeria's biggest company by market capitalization for $300 million a Dangote spokesman said on Monday.
Dangote Cement spokesman Carl Franklin confirmed the sale but provided no further details.
Stockbrokers in Lagos told Reuters 243 million shares of Dangote Cement were transferred to ICD which holds stakes in some of the emirate's top companies at 200 naira each a 12 percent premium to Dangote Cement's price of around 223 naira on Monday.
"ICD is diversifying its portfolio ... into the West African market through a minority stake in Dangote Cement. We believe this bodes well for future investments into Nigeria from the Middle East" Akinbamidele Akintola an Africa equity sales executive at Renaissance Capital said.
Dangote Cement owned by Africa's richest man Aliko Dangote is expanding and plans to roll out cement plants across Africa to reach an annual 62 million tonnes capacity by 2017 up from a projected 42 million tonnes this year.
It reported pretax profit of 107.1 billion naira ($659.4 million) in the first half down 0.57 percent from a year ago on revenues of 208.9 billion naira.
Shares in Dangote cement which make up a third of Nigeria's stock market and hit a record high of 250 naira in July traded flat at 223 naira on Monday valuing Nigeria's biggest company at about 3.97 trillion naira ($24.5 billion).
Dangote Cement faces competition in Africa from French cement maker Lafarge which is combining its Nigerian and South African businesses to accelerate growth on the continent.
Last year Dangote Industries sold a 1.5 percent of its 95 percent stake in Africa's biggest cement producer to South Africa's Public Investment Corporation (PIC) for $289.3 million.
Dangote Cement spokesman Carl Franklin confirmed the sale but provided no further details.
Stockbrokers in Lagos told Reuters 243 million shares of Dangote Cement were transferred to ICD which holds stakes in some of the emirate's top companies at 200 naira each a 12 percent premium to Dangote Cement's price of around 223 naira on Monday.
"ICD is diversifying its portfolio ... into the West African market through a minority stake in Dangote Cement. We believe this bodes well for future investments into Nigeria from the Middle East" Akinbamidele Akintola an Africa equity sales executive at Renaissance Capital said.
Dangote Cement owned by Africa's richest man Aliko Dangote is expanding and plans to roll out cement plants across Africa to reach an annual 62 million tonnes capacity by 2017 up from a projected 42 million tonnes this year.
It reported pretax profit of 107.1 billion naira ($659.4 million) in the first half down 0.57 percent from a year ago on revenues of 208.9 billion naira.
Shares in Dangote cement which make up a third of Nigeria's stock market and hit a record high of 250 naira in July traded flat at 223 naira on Monday valuing Nigeria's biggest company at about 3.97 trillion naira ($24.5 billion).
Dangote Cement faces competition in Africa from French cement maker Lafarge which is combining its Nigerian and South African businesses to accelerate growth on the continent.
Last year Dangote Industries sold a 1.5 percent of its 95 percent stake in Africa's biggest cement producer to South Africa's Public Investment Corporation (PIC) for $289.3 million.
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