Nigeria’s leading business tycoon, Aliko Dangote, has sold a 2.3 per cent stake in his cement firm, Dangote Cement, to foreign buyers.
According to Reuters, Dangote Industries Limited sold the stake in a stock market deal valued at N86.1 billion ($236 million).
The news agency reports that stock exchange confirmed the sale Tuesday, adding that a total of 416 million shares of Dangote Cement were traded at N210 in six off-market deals.
The traded deals, report said, were negotiated between Stanbic IBTC and Meristem stockbrokers.
According to Dangote Cement spokesperson, the sale of stake deal was between Dangote Industries Limited and some foreign investors.
Dangote Cement makes up one third of the Nigerian Stock Exchange, NSE’s, total market capitalisation. On Tuesday, the company shed 0.68 percent, to value it at 3.79 trillion naira ($10.4 billion).
Sources said due to its heavy capitalisation, the company was yet to meet its minimum float requirement, thus making it difficult to find a buyer.
Dangote Industries sold a 1.5 per cent of its 95 percent stake to South Africa’s Public Investment Corporation (PIC) for $289.3 million in 2013.
In 2014, it also sold a 1.4 per cent stake to Sovereign fund Investment Corp of Dubai (ICD) for $300 million.
But the company faces competition from other local rivals including French cement maker, Lafarge, which has combined its Nigerian and South African businesses to accelerate growth on the continent.
Considered as one of Nigeria’s biggest companies, the firm was listed on the NSE in 2010.
Earlier on Monday, Dangote Cement released its financials on the floor of the Nigerian Stock Exchange which indicated that its sales volume increased showing a growing capture of Pan-African market.
Revenues from operations in Nigeria increased by 34.5 per cent to ₦291.4 billion while Pan-Africa revenue increased by 63.7 percent to ₦124.4 billion from ₦76.0 billion mainly as a result of increased volumes and foreign exchange gains when converting the sales from country local currency into Naira.