Dangote Cement applies for two-year free float extension, Nigeria

Dangote Cement Plc  is seeking an extension of the free-float waiver it secured from the when it merged with Benue Cement Company Plc two years ago, reports from the Nigerian Stock Exchange (NSE) indicated.

The 24-month waiver extension is to enable the company remain listed on the stock exchange despite maintaining a free-float that is below 25 per cent, a violation of the NSE requirement for listed companies.

Out of the companies listed on the Nigerian bourse, Dangote Cement is one of two listed companies not maintaining a 25 per cent free-float.

Currently, Dangote Industries Limited controls 94 per cent stake of Dangote Cement Plc’s paid-up capital shares while the public only controls the remaining six per cent. According to a report by Lagos-based newspaper THISDAY, the exchange claims that the waiver gotten by Dangote Cement in 2010 will elapse on October 26, 2012. It also added that it has received official application for waiver extension from the company.

“The council of the exchange favourably considered the request of Dangote Cement for a 24-month period of extension within which to comply with the minimum free-float requirement, that is, by 26 October 2012.

During this period, the company was expected to commence plans to undertake a dual listing on an international exchange. Dangote Cement Plc has, however, intimated that, the October 2012 deadline might not be feasible given the enormous requirement for a dual listing and has therefore requested for additional 24 months to comply,” the bourse said.