Dangote Cement has informed the investing public of its intention to repurchase 10% of its issued shares. The special resolution will be considered at the Extraordinary General Meeting (EGM) scheduled for December 13, 2022.
A Special Resolution that would be passed at the Extra-ordinary General Meeting (EGM) is stated as follows in a statement available on the Nigerian Exchange website:
That the company be and is hereby authorised to undertake a share buyback of up to 10% of its issued shares as of the date of this resolution (excluding any treasury shares in the Company’s share capital), on such terms and conditions, in such volumes and at such times as the Board of Directors deems fit, provided that the authority granted therein shall continue to be in force until the company has acquired up to an aggregate 10% of its issued shares as stated above.
A share buyback is a transaction in which a company buys back its own shares from the market. The company may purchase shares directly from the market or allow its shareholders to tender their shares to the company at a fixed price.
A share repurchase reduces the number of outstanding shares of a company, increasing both demand and price.
