According to a report by Vanguard, talks have reached advanced stages for an firm, the Investment Corp of Dubai (ICD) the state fund which holds stakes in some of the emirates big firms, to purchase $300 million stake in Dangote Cement, according to a report by Vanguard.
Carl Franklin, the head of investor relation for the Dangote group who made the announcement said the acquisition will see the ICD take up to 1.3% in Dangote Cement.
Stockbrokers at the Nigerian Stock Exchange (NSE) said 243 million shares of Dangote Cement has been transferred to the ICD at a rate of N200 per share, a 12% premium to Dangote cement’s price of N223 on Monday, September 8, 2014
Akinbamidele Akintola, an Africa equity sales executive at Renaissance Capital said. “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,”.
This follows the company’s resolve to expand its operations beyond Africa to the Middle east and Latin America targeting to increase its capacity to 62 million metric tons by 2017 in contrast to a 42 million metric tons projected this year.
The latest moves by Dangote Cement will see it move into the class of top 10 global cement producers in the world.
