Nigeria’s biggest cement producer has been approved for listing on the Nigerian Stock Exchange (www.nigerianstockexchange.com), and is expected to boost market capitalization by 37% in the process, according to newsagency Bloomberg. The agency quotes a statement from the NSE that the 2.09 trillion naira ($14 billion) Dangote Cement company will be formed from a merger between Dangote Cement and Benue Cement Co.
According to the report, a total of 15.5 billion shares will be listed at 135 naira each before the wider offer closes.. Afrinvest (West Africa) Ltd. will introduce the issue.
Recently the NSE, one of the African giants, with a a market capitalization of some $37.2 billion, has been troubled by a range of governance issues. Alhaji Aliko Dangote, a Nigerian billionaire and one of Africa’s richest men, had been ordered to stop acting as President of the NSE in a clampdown which also saw the sacking of the Director General.
Bloomberg quotes Bismarck Rewane, chief executive officer of Lagos-based Financial Derivatives Co.: “It is a very important development because it will boost confidence in the market. The listing is another opportunity for investors to participate in a company that has become the leading producer of cement in Africa.”
Dangote Cement has projects and operations in Nigeria, Benin, Senegal, Zambia and Ghana.
Dangote Group has interests in Dangote Sugar Refinery Plc, National Salt Co. Nigeria Plc, logistics and real estate. Some of these are listed in their own right.
According to reported announcements, shareholders of Dangote Cement and Benue, in which Dangote has a stake, will meet on Sept. 28 to pass resolutions on the proposed merger.