Nigeria’s Dangote Industries Limited sold a 2.3 percent stake in Dangote Cement to foreign investors today in a stock market deal valued at 86.1 billion naira ($236 million), Reuters claim.
Africa’s biggest cement maker has been selling small stakes to increase its free float, which is well below the Nigerian stock exchange’s required level.
A spokesman for the Nigerian Stock Exchange said 416 million shares of Dangote Cement were sold on Tuesday at 210 naira each in six off-market deals negotiated between Stanbic IBTC and Meristem stockbrokers.
The price was below Dangote Cement’s closing price on Monday of 223.75 naira. Shares in the company, owned by Africa’s richest man Aliko Dangote, jumped after news of the share sale, closing up 7.3 percent at 240 naira, valuing the company at 4.09 trillion naira ($11.2 billion).
A spokesman for the cement maker said the deal was between Dangote Industries Limited and some foreign investors, whom he did not identify.
The transaction increases Dangote Cement’s free float to 10.4 percent according to Thomson Reuters calculations, still well below a stock market requirement of 20 percent.