Dangote Cement remains most capitalised firm on the Exchange

     Written by Ade Ogidan

  DANGOTE Cement remains the most capitalized company on the Nigerian Stock Exchange (NSE), as it closed the year, 2013, with a market capitalization of N3.73 trillion.

  Nigerian Breweries and Nestle Nigeria, all in the manufacturing sector, trailed Dangote Cement with  market capitalization of N1.3 trillion and N951.2 billion respectively.

 Dangote Cement Plc was also ranked as the Most Profitable Company in Nigeria, with a profit of N201billion in 2013. Zenith Bank Plc and Guaranty Bank Plc (GTBank), ranked next with profits of N95billion and N90billion, respectively.

  Recent stake by Investment Corporation of Dubai (ICD), the main investment arm of the Emirate of Dubai, which acquired 243,500 million units of Dangote Cement Plc sold by Dangote Industries Limited for $300 million (about N48 billion) was indeed a boost to the company and its shareholders.

  The sale and purchase of the shares were executed by Meristem Securities Limited, a dealing member of the Nigerian Stock Exchange (NSE), while Guaranty Trust Bank Plc, acted as the banker.

  Under the terms of the agreement, which was signed at a ceremony in Dubai attended by HE Mohammed Ibrahim Al Shaibani, Executive Director and Chief Executive Officer of the Investment of Corporation of Dubai and Alhaji Aliko Dangote, President and CEO of Dangote Industries Limited, ICD agreed to invest $300million (about N48 billion) to acquire a minority interest in the company.

  Dangote Cement, which has in recent years achieved significant revenue growth and industry-leading margins, has market capitalization of approximately $23billion. This places the company, in value terms, above industry heavyweights such as Anhui, CRH and Heidelberg, and leaves it second in value only to the recently merged Lafarge/Holcim.

  The company has ambitious expansion plans to grow its capacity from the current levels of c.35 MTA to more than 60 MTA by 2018, both domestically and across the continent, in order to capitalise on long term structural economic growth.

  Domestically this will allow the company to maintain and grow its market leading position (currently 62 per cent) in Africa’s largest economy. Nigeria’s GDP is expected to grow by 6.6 per cent  to 7.3 per cent per year between 2014 and 2018.

  The non-domestic expansion of c.19 MTA across 12 other countries, leverages the company’s industry and operational expertise whilst also targeting clear market inefficiencies. The plan is already taking shape with the commissioning of plants in South Africa earlier in the year and plans to commission plants in Senegal, Zambia, Cameroon and Sierra Leone before the end of the year.

  The transaction represents a landmark for ICD being its first major investment in the high growth African continent and is aligned with one of its key strategic goals to pursue diversification.

Culled from  http://www.ngrguardiannews.com