South African firm stakes NGN45.7bn on Dangote Cement

Public Investment Corporation of South Africa (PIC) Monday bought 255,607,605 shares or 1.5 per cent of Dangote Cement Plc for NGN45.75bn (US$0.29bn) from Dangote Industries. PIC is owned 100 per cent by South African government and it has funds valued at US$115bn under its management.

Although no explanation was given by Dangote Cement regarding the acquisition, PIC is now holding 1.5 per cent in addition to the 5.11 per cent of the company’s  shares available for trading on the Nigerian Stock Exchange (NSE). DCP has a paid-up share capital of 17.04bn. But only 5.11 per cent is made available to the investment public while Dangote Industries Ltd holds 94.89 per cent.

Market analysts said the transaction might be strategic considering the fact Dangote Cement already had a plant in South Africa as part of its pan African expansion. Dangote Cement owns 67 per cent of Sephaku Cement, a 2.5Mta integrated plant that is expected to be inaugurated in 1Q14.