Investment Corporation of Dubai, ICD, the investment arm of the government of Dubai, has acquired 243,500 million units of Dangote Cement Plc for $300m (N48.7bn) at N200 per unit from Dangote Industries Limited.
A confirmation of this deal was provided by the Nigerian Stock Exchange, which disclosed that stocks were traded on Monday as an off-market trade.
The NSE added that the purchase and sale were carried out by Meristem Securities Limited, with Guaranty Trust Bank Plc acting as the banker.
A statement on the deal explained that the agreement was signed at a ceremony in Dubai, which was attended by the Executive Director and Chief Executive Officer, ICD, Mohammed Al Shaibani, and the President/Chief Executive Officer, Dangote Industries Limited, Alhaji Aliko Dangote The statement explained that the deal puts Dangote Cement, which accounts for up to 30 per cent of the NSE’s total market capitalisation, ahead of industry giants like Anhui, CRH and Heidelberg in terms of value.
Al Shaibani was quoted as saying, “We believe sub-Saharan Africa, and particularly Nigeria, provides fantastic long-term investment opportunities. In this case, Dangote Cement provides some excellent investment credentials, being a highly profitable, well-capitalised and efficiently run organisation, with a market leading position in the largest African economy and very well positioned to access and act on growth opportunities across the continent.
“Consequently, we are very pleased to be given the opportunity to invest and participate in its future growth potential.”
Dangote expressed his pleasure that “a prestigious investor” like the ICD had joined Dangote Cement’s growing list of top-tier international shareholders.
“They share our vision of Africa that will grow to become an economic powerhouse in the coming decades as its people rise to become prosperous members of the global economy.
“Our products may be simple bags of cement but millions of Africans will use them to build a continent that is rich in opportunities for entrepreneurs and investors like ICD, who support them,” said Dangote.