Dangote Cement shares jump big on Otedola investment

Femi Otedola has explained his “significant investment” in Dangote Cement which has helped drive the company’s shares over 53% in the last week.

Dangote Cement, owned by Aliko Dangote, is Nigeria’s biggest company by market capitalization valued at over N9 trillion. Its value has soared in the last two years following twin buybacks that saw the company own 166.9 million shares of its 17.04 billion total.

The Dangote Cement sold N350 per share two Fridays ago, but gained 53.9% last week following Mr Otedola’s investment. On Monday, the company gained 9.99% to close at N592.60.

Mr Otedola, who holds the majority stake in power company Geregu Power Plc. and 5.57% in FBN Holdings, said on Monday that his latest investment underscores his confidence in “Dangote Cement’s potential to generate foreign exchange for the country and his dedication to supporting businesses that contribute to Nigeria’s economic resilience.”

Quotes

“Dangote Cement’s export capabilities and extensive operations across Sub-Saharan Africa are essential for regional economic integration and growth,” Otedola commented. “My investment is a testament to my confidence in its potential to propel Nigeria’s and Africa’s industrial and economic development,” he said in a statement.

“Dangote Cement’s unique position with two export terminals offers a substantial opportunity to earn foreign exchange, crucial for Nigeria’s economy. This, along with the company’s pan-African presence, makes it an ideal investment choice.

“In my investment decisions, I focus on long-term wealth preservation and ensuring shareholders are the ultimate beneficiaries of a company’s success,” Otedola stated.

“Companies like Dangote Cement, which consistently deliver value to their shareholders, are fundamental for sustainable economic growth. My investment reflects my belief in its capacity to continue providing significant returns and my commitment to businesses that prioritize their shareholders.

“Dangote Cement’s strong corporate governance and impressive ESG compliance track record make it an ideal investment choice. It represents the type of company that not only contributes to Nigeria’s industrial strength but also aligns with my vision for ethical and sustainable business practices.”