A while back, this listing would have meant sth. But now? Not so sure.

here we go again,
wasnt AP valued for over N250 per share two years
there will always be suckers

bigben431:

Quote from: naijatoday on Today at 06:08:16 PM
$14Billion?   

How did they arrive at this number, and what companies will be under Dangote Cement?


The only reason I am asking is because  Lafarge the largest building material manufacturer has a market cap of 11.2 billion pounds.


Well done for pointing this out. There is something fishy about this valuation.


The article says the company will be listing 15.5 billion shares @ N135 each. I will try and use the market cap method to make the math easier assuming an exchange rate of N150 to $1

N135 = $0.9
15.5 billion shares X $0.9 = approx $13.9 billion

So from the above, their valuation seems accurate, the other company u guys mentioned might have a lower valaution if they have less outstanding shares (less than 15.5 billion shares), dont really have time to check some foreign company.

Have to tip your hat to this guy

It is not the amount of share you offer, but the value of the share.

And I made a mistake when i said lafarge is worth 11.2 billion pounds it should have been 11.2 billion Euro. When you convert that amount to dollars it is around $14.2 billion.

Is Dangote telling us that Dangote Cement is worth more that the largest building material company in the world in terms of asset. All I am going to say is look before you leap.

Congratulation to Dangote, he is about to make millions in cash from this deal when it happens in November .

It would be interesting to know the basis of valuation. The market hasnt forgotten the excesses of the recent past where companies without addresses where floating for lots of loot. Would be interesting to see what research analysts (if any) come up with as an alternative valuation.

I guess the fundamental issue is that people think the company is overvalued. First shareholders will receive 1 share per 2 shares of BCC @ the Tuesday closing price of N67.50 which amounts to N135 …that’s how the share price was derived.

Now going to Lafarge I just checked and the closing stock price is E38.75 which equals to $49 at an exchange rate of $1 = E0.78638. Outstanding shares for the company is 286.5 million so the valuation is $49X 286.5million = E14.08 billion.

Basically both companies are valued the same BUT note two underlying differences

1. Dangote is listed in Naira as to euro or dollar, if it was listed in usd the share price would be about $0.9
2. Dangote has more shares outstanding than Lafarge

Many factors come into valuing a company, enterprise value, ROE, ROIC, capex, working capital etc…so you cannot jump into a conclusion saying the company is overvalued. BBC is a public company, u can look at the financial statements and draw conclusions for your self.


Is Dangote telling us that Dangote Cement is worth more that the largest building material company in the world in terms of asset. All I am going to say is look before you leap.[b][/b]


Refer to my statement above – you do not use only an asset to determine the value of the company. You use enterprise value


Dangote is probably one of the most transparent bizman out there.

It is really hard to explain core finance terms to people who are not in the field (no offense) , there are just too many factors that come into play that an outsider really doesn’t crap. One big thing I forgot is the future cash flow for the company, there is always going to be demand for cement in Africa. The continent needs about $1 trillion of infrastructure spending over the next 20 years.

And no alternate research analysts are needed to come up with an alternate valuation. Playing in the stock market is not for everyone…u should use your head to invest and not your heart.

@Bigben431

Seriously, you are talking utter garbage. The fundamental thing, if this story is true, is that we have a local cement company that purports to be as valuable as the world's largest cement company.

Effectively, investors are going to be fleeced as they will be buying into a hideously inflated valuation at that price with Dangote on the other side of the trade.

Dangote cement has shut down one of their plants in port harcourt and the 2nd plant will soon be shut down,where are they getting all the billion figures from.biz is not done by journalist,rememeber what happend to the so called world class company owned by obasanjo,ndi okereke etc TRANSCOR

hope dis is nt anoda scam by DANGOTE,remember wot happened to NASCON(national salt Co nig plc) share OFFER released,sold and closed within a day by DANGOTE at N22 rate per share some years back.i bought into it, afterward,even ever b/4 world financial meltdown,d price crashed.after meltdown it further crashed to N6.40 as at 03/09/2010 from NSE data i could lay my hand on as at d time of typing dis piece.

my dia brodas and sisters,dis could be anoda HYPE to lure people into buying it,only 4 d price to crash after swindle u of ur hard-earned moni.Like somebody said LOOK LOOK LOOK LOOK very well and carefully b/4 u LEAP

My 2kobo

So how much do you really think the company is worth, do your own analysis, plus all the Nigerian journalists cant be incompetent crooks; they should come out and tell us their own valuation based on figures available to them

de man is really tryin

And no alternate research analysts are needed to come up with an alternate valuation. Playing in the stock market is not for everyone…u should use your head to invest and not your heart.


@Bigben431
  Are you serious? So you mean an Investment bank wont research the offer to see if it is over or under valued and advise their clients appropriately. If we  are to use our head as you advise then it must be based on hard metrics after due research. Thats is part of the problem with some of our " finance professionals"-No research.

@Bigben431
   Are you serious? So you mean an Investment bank wont research the offer to see if it is over or under valued and advise their clients appropriately. If we  are to use our head as you advise then it must be based on hard metrics after due research. Thats is part of the problem with some of our " finance professionals"-No research.


Ok, it seems I am being misunderstood, I should be more detailed next time, what I meant by no alternate research is needed is because, it can be almost guaranteed that most investment banks will come with a close valaution, i am yet to see the prospectus of the offering but there is no doubt that most of the big players of the industry are underwritting this offering, and all they care about getting their fees period.the higher the valuation the higher the fees, thats how it works in the industry, speaking as an insider

I rest my case here, this is a simple choice if you dont trust the valuation u can simply walk away and invest elsewhere, people that invest in this company will do that at their own risk, this is not rocket science

^^^ okkk I read u, of course underwriters prefer bigger offers cos of fees. Makes sense, its all about the usual caveat emptor! afterall its a speculative investment with downside and upside risk.

bigben431:



It is really hard to explain core finance terms to people who are not in the field (no offense) , there are just too many factors that come into play that an outsider really doesn’t crap. One big thing I forgot is the future cash flow for the company, there is always going to be demand for cement in Africa. The continent needs about $1 trillion of infrastructure spending over the next 20 years.

And no alternate research analysts are needed to come up with an alternate valuation. Playing in the stock market is not for everyone…u should use your head to invest and not your heart.

No sir.
I do not need a degree in Finance to understand that Lafage has operations in Africa in addition to the rest of the world.
Therefore, the bold comments do not hold water.

best of luck to those hoping to buy these or other shares.
I would not buy any such thing in this country again until I see a semblance of transparency and professionalism in the capital and equity market.
It takes a higher power differentiating the frauds of the genuine.

lengthy but worth reading:-

[b]The M&A between Dangote Cement and BCC - Matters Arising


Is it okay to promote/pitch the Dangote/BCC merger and listing as a good panacea to the leverage banks has on the NSE? Yes, it would appear so – without sentiments.

That is – unless such sentiments are devoid of questions about the process, communication management, and the perception related thereto or arising therefrom. Let us take a look at some five issues ahead of the analysis that is to come from the scheme of merger:

First, in managing the news communication, information had filtered out weeks back about the alleged granting of waivers on fees, given the amount involved. This had led to more interest from the market, long aware of discussions on the planned merger before the breakdown in corporate governance ethos at the NSE. The eventual newspaper expose therefore, of factual internal decisions from the SEC, and ahead of the NSE’s decision was considered a fait accompli. This in itself suggested that this was a deal that needed to go through, presented as an indication of market confidence return and without any investment justification or discussion on the investment rationale or benefit to the average investor.

Since no formal business combination document was publicly released before the NSE approval, it would be safe to assume that the newspaper reports were no more than corporate press releases, rather than market news.


Second, We recall that one of the problems with this deal with the then NSE management was the contentious issue of compliance with the market rule that no one person holds more than 75% of a publicly listed company (i.e. NASCON) and the information that only 3% was offered to shareholders of BCC Plc. This matter requires a public clarification, including a confirmation of consent from the shareholders of BCC Plc.

It is instructive that we clarify that the percentage which BCC Plc shareholders will own is dependent on how many shares the new company is issuing. BCC Plc shareholders that do not want to be part of the merger should/could be bought out – as is standard practice.


Third, it would appear that the decision to approve the merger was not contained in the Agenda and final resolutions at the last AGM of BCC Plc – the listed company on the bourse. We are to assume that this must have been obtained at an extra-ordinary general meeting held before the documents were presented to Sec and the NSE, as part of what the regulators would have had to review.

It would appear that we do not have the type of situation experienced with Unipetrol Plc and Agip Plc, both quoted firms – but more of the situation in Zenon Oil’s attempted takeover of AP Plc with us. In this latter incident, the shareholders of AP Plc were consulted at an extra-ordinary general meeting held at Ibadan and their resolution forwarded to the SEC who rejected the deal and remains the reason why the AP/Zenon merger never took place.

Yet as we can see from the petitions making the rounds from insiders, both companies are being run as one. This might prove an instructive parallel in the days ahead as the shareholders role in assenting to such a deal gains traction. How did the SEC/NSE approve the deal without the shareholders consent given its public interest mandate?

The scheme of merger (court ordered document) has now been released and sent out to shareholders.

Further to the SEC/NSE approval, and preparatory to the listing of the new company, shareholders of BCC and Dangote Cement will now hold separate court-ordered meetings on September 28, 2010 in Kano to endorse the scheme of the arrangement. While the meeting of shareholders of BCC will hold at 11.00 am, that of Dangote Cement would hold at 10.00 am. Specifically, 15.494 billion units of the expanded company would be listed at N135 per share – a record high for a listing by introduction in the annals of the exchange http://proshareng.com/news/11978


Fourth, it is important to the market that a clarification is provided on the status of the new company and if the other Dangote cement operations in other countries will form part of the new Dangote Cement Plc. It is instructive to note that the Dangote Cement operations extends to existing entities in Zambia, Senegal, Benin, Ghana and South Africa which are reported to be viable operations, albeit with lower annual production outputs.


Fifth, Perhaps more important to the practice of M&A in our capital markets is the need to bed the conflict of interest possibility that appears to exist in the transaction – based on communications so far.

It would appear that the financial advisor representing the unlisted Dangote Cement Limited on the one hand and the listed BCC Plc on the other hand is the same entity – Afrinvest Limited.

It is curious that the advisers on the buying side equally appear on the selling side of the transaction – with all the implications on transparency, pricing, and the ‘who is working for whom’ question. Was a special approval sought and granted by the SEC?


Sixth, the market could not ignore the timing impact of this decision, four weeks after the SEC acted on a petition by the promoter of the companies merging, to take over the NSE – having his merger plans now approved with dispatch. It is a curious co-incidence but since we do not live in a world devoid of co-incidences, we have to assume that nothing untoward is/was at play.

The notion that the merger, as explained below, could effectively make the promoter potentially responsible for more than a third of the market capitalisation however raises questions that impacts on the demutualisation agenda – a subject for another day.

The total market cap of the banking sector as 6th September is N2.371 trillion out of a total market cap of approx. N5.901 trillion (minus the 2nd tier which contributes N4.155bn) – if the total Dangote company market capitalisation before the merger is considered i.e. Dangote Flour N85.150bn, Dangote Sugar N196.680bn, BCC N246.913bn, NASCON – N16.161bn; we have a total of N0.595 trillion - already 10% of the total market share. BCC’s and Dangote Cement had revenues last year of around N33.35bn ($230m) and N188.50bn ($1.3bn) respectively.

With the expanded company - to be known as Dangote Cement Company Plc, this should add about N2.13 trillion to the market capitalisation of the NSE and effectively bring the Dangote Group to an effective 43% of the total market capitalisation as at September 6, 2010. That is an interesting scenario to contemplate.

We reiterate that we have nothing against the initiative and we recall that UACN Plc – the conglomerate is equally listed on the bourse with a separate and distinct board; having related companies such as Grand Cereals and UACN properties listed on the exchange. This has never been promoted or reported as a ‘block’.

There must be some reasoning in the two approaches and the market may need to take time to discern the emerging trends.


Seventh, the last listing by introduction we had, of this magnitude was the November 2006 approval given by the Council of The Nigerian Stock Exchange through its Quotation Committee to the Transnational Corporation of Nigeria Plc's listing by Introduction of 18.55 billion ordinary shares of 50kobo each at N6.00 per share. The shares which was listed on Thursday, November 23, 2006 with a market value of N111 billion is now priced at N0.50k.

Most companies listed by introduction on the NSE in the last 3 years were generally weak companies and are currently facing dire straits – MTS Plc, IHS Plc, MTech Plc, etc are currently trading below listed prices; and a few are facing current NSE sanctions for failure to meet post listing financial reporting requirements less than twenty four (24) months after listing.

There are only a few sterling example of listing via introduction – GT Bank Plc for example which listed at N10 per share in 1996 and later conducted an IPO at the onset of the banking consolidation programme; which established the bank as a value based company – and we are all living testimony as to the strength and character of this commercial lender, now one of the top three banks in Nigeria.

The parallel with Transcorp Plc should not and must not encourage a comparison with this current bid by the new Dangote Cement Plc but should raise concerns at the SEC/NSE, which has not had a history of high value listing by introductions – a traditional approach usually deployed for weaker companies seeking listing outside the primary market.

The point being made here relates to the point made earlier; the high price of listings by introduction relative to the current market realities and the rules for listing by introduction that should have safeguards to protect investors in the secondary market.

The true test of a company of Dangote’s mettle must be the primary market – the offering of the shares of the merged company, after a listing in no less than 6-12 months should address this concern.

This is not a notion unique to Nigeria or a recommendation specific to the company. There is a growing debate about the place of listings by introduction and investors protection that we must consider given our recent past.

For example, the Philippine Stock Exchange (PSE) has suspended listings by introduction, other than those applications filed before February 17, 2010 and is reviewing its rules. Companies can list their shares on the PSE by introduction as long as they agree to hold an IPO within 12 months.

The PSE said that "we are reviewing the rule on listing by way of introduction…. to make sure that the rules are consistent and clear so that issuers can be guided correctly and at the same time ensure that the investing public is fully informed of the developments with the issuers," PSE Chairman Hans Sicat said in a statement on February 2010.

The PSE bourse temporarily blocked companies from listing by introduction last February 18. While it gave no explanation for the suspension, the move came as share prices of companies that had taken this route — listing stocks without necessarily selling these to the public — skyrocketed.

The action followed a similar move by the Hong Kong Exchange to halt listing by introduction unless issuers can show they have taken steps to ensure ample liquidity and an orderly market, and until the bourse finds ways of dealing with potential price fluctuations.

At the HHE, the new practice follows an opening day surge and plunge in shares of Asian Citrus Holdings Ltd., China’s biggest orange plantation owner, that prompted investors to criticize disclosure rules.

Generally, several companies that listed their stocks by introduction in most markets; have seen dramatic increases in their share prices, raising concerns that a loophole was being used to drive up prices.

It is this point that we have yet to receive assurance on from our market regulators in Nigeria[/b].

No sir.
I do not need a degree in Finance to understand that Lafage has operations in Africa in addition to the rest of the world.
Therefore, the bold comments do not hold water.

best of luck to those hoping to buy these or other shares.
I would not buy any such thing in this country again until I see a semblance of transparency and professionalism in the capital and equity market.
It takes a higher power differentiating the frauds of the genuine.[b][/b]


Ok, I made up my mind not to post on this topic again, but I have to address some misconcenptions about my earlier posts.

First, I never said you needed a degree in finance, pple have various talents/passions so it will be iresponsible to say that,

LaFage has operations in Africa, but do they supply all the cement in Africa? I just checked thier financials for 2009 and cement sales was E2.61 billion for Africa/Middle east region, taking note of the construction boom in the middle east.

When I said the continent will need abt $1 trillion in infastructure spending, I never said Dangote was going to supply all the cement, Its just that there is a ready market for his products, and forces of demand and supply will come into play


As i said earlier, playing the stock market is not for the faint hearted, the market is manipulated everywhere from Somalia to the US, so buying is at your own risk, It really does not take a higher power in diferentiating frauds from the genuine, you only need two things due diligence and technical analysis,

I repeat those buying this share will either be smiling to the bank in a few years or cld be jumping off the bridge, the choice is yours,

* NSE DG under investigation based on petitions,
* Two elder sister companies enjoy good price fluctuations, fairly steady,
* The "strongest" of the Cement companies in Nigeria is approx. 75% captured, and being re-moulded into ,
* Possibly >30% influence on the Stock Exchange daily, positive or negative,

HOW BEST CAN I CONTROL THE GOVERNMENT, AND BY THE COUNTRY?

Watch out for the next president; landslide victory, possibly 92% like in a sister african country

Vacancy: President wanted, must be YOUNG, EDUCATED, IKOBA EXTRACTION, FIT FOR "ROTATION", FINANCIALLY INDEPENDENT , E.T.C.

N.B.: Applications to be submitted on or before May 29, 2019

lengthy but worth reading:-

The M&A between Dangote Cement and BCC - Matters Arising


Is it okay to promote/pitch the Dangote/BCC merger and listing as a good panacea to the leverage banks has on the NSE? Yes, it would appear so – without sentiments.

That is – unless such sentiments are devoid of questions about the process, communication management, and the perception related thereto or arising therefrom. Let us take a look at some five issues ahead of the analysis that is to come from the scheme of merger:

First, in managing the news communication, information had filtered out weeks back about the alleged granting of waivers on fees, given the amount involved. This had led to more interest from the market, long aware of discussions on the planned merger before the breakdown in corporate governance ethos at the NSE. The eventual newspaper expose therefore, of factual internal decisions from the SEC, and ahead of the NSE’s decision was considered a fait accompli. This in itself suggested that this was a deal that needed to go through, presented as an indication of market confidence return and without any investment justification or discussion on the investment rationale or benefit to the average investor.

Since no formal business combination document was publicly released before the NSE approval, it would be safe to assume that the newspaper reports were no more than corporate press releases, rather than market news.


Second, We recall that one of the problems with this deal with the then NSE management was the contentious issue of compliance with the market rule that no one person holds more than 75% of a publicly listed company (i.e. NASCON) and the information that only 3% was offered to shareholders of BCC Plc. This matter requires a public clarification, including a confirmation of consent from the shareholders of BCC Plc.

It is instructive that we clarify that the percentage which BCC Plc shareholders will own is dependent on how many shares the new company is issuing. BCC Plc shareholders that do not want to be part of the merger should/could be bought out – as is standard practice.


Third, it would appear that the decision to approve the merger was not contained in the Agenda and final resolutions at the last AGM of BCC Plc – the listed company on the bourse. We are to assume that this must have been obtained at an extra-ordinary general meeting held before the documents were presented to Sec and the NSE, as part of what the regulators would have had to review.

It would appear that we do not have the type of situation experienced with Unipetrol Plc and Agip Plc, both quoted firms – but more of the situation in Zenon Oil’s attempted takeover of AP Plc with us. In this latter incident, the shareholders of AP Plc were consulted at an extra-ordinary general meeting held at Ibadan and their resolution forwarded to the SEC who rejected the deal and remains the reason why the AP/Zenon merger never took place.

Yet as we can see from the petitions making the rounds from insiders, both companies are being run as one. This might prove an instructive parallel in the days ahead as the shareholders role in assenting to such a deal gains traction. How did the SEC/NSE approve the deal without the shareholders consent given its public interest mandate?

The scheme of merger (court ordered document) has now been released and sent out to shareholders.

Further to the SEC/NSE approval, and preparatory to the listing of the new company, shareholders of BCC and Dangote Cement will now hold separate court-ordered meetings on September 28, 2010 in Kano to endorse the scheme of the arrangement. While the meeting of shareholders of BCC will hold at 11.00 am, that of Dangote Cement would hold at 10.00 am. Specifically, 15.494 billion units of the expanded company would be listed at N135 per share – a record high for a listing by introduction in the annals of the exchange http://proshareng.com/news/11978


Fourth, it is important to the market that a clarification is provided on the status of the new company and if the other Dangote cement operations in other countries will form part of the new Dangote Cement Plc. It is instructive to note that the Dangote Cement operations extends to existing entities in Zambia, Senegal, Benin, Ghana and South Africa which are reported to be viable operations, albeit with lower annual production outputs.


Fifth, Perhaps more important to the practice of M&A in our capital markets is the need to bed the conflict of interest possibility that appears to exist in the transaction – based on communications so far.

It would appear that the financial advisor representing the unlisted Dangote Cement Limited on the one hand and the listed BCC Plc on the other hand is the same entity – Afrinvest Limited.

It is curious that the advisers on the buying side equally appear on the selling side of the transaction – with all the implications on transparency, pricing, and the ‘who is working for whom’ question. Was a special approval sought and granted by the SEC?


Sixth, the market could not ignore the timing impact of this decision, four weeks after the SEC acted on a petition by the promoter of the companies merging, to take over the NSE – having his merger plans now approved with dispatch. It is a curious co-incidence but since we do not live in a world devoid of co-incidences, we have to assume that nothing untoward is/was at play.

The notion that the merger, as explained below, could effectively make the promoter potentially responsible for more than a third of the market capitalisation however raises questions that impacts on the demutualisation agenda – a subject for another day.

The total market cap of the banking sector as 6th September is N2.371 trillion out of a total market cap of approx. N5.901 trillion (minus the 2nd tier which contributes N4.155bn) – if the total Dangote company market capitalisation before the merger is considered i.e. Dangote Flour N85.150bn, Dangote Sugar N196.680bn, BCC N246.913bn, NASCON – N16.161bn; we have a total of N0.595 trillion - already 10% of the total market share. BCC’s and Dangote Cement had revenues last year of around N33.35bn ($230m) and N188.50bn ($1.3bn) respectively.

With the expanded company - to be known as Dangote Cement Company Plc, this should add about N2.13 trillion to the market capitalisation of the NSE and effectively bring the Dangote Group to an effective 43% of the total market capitalisation as at September 6, 2010. That is an interesting scenario to contemplate.

We reiterate that we have nothing against the initiative and we recall that UACN Plc – the conglomerate is equally listed on the bourse with a separate and distinct board; having related companies such as Grand Cereals and UACN properties listed on the exchange. This has never been promoted or reported as a ‘block’.

There must be some reasoning in the two approaches and the market may need to take time to discern the emerging trends.


Seventh, the last listing by introduction we had, of this magnitude was the November 2006 approval given by the Council of The Nigerian Stock Exchange through its Quotation Committee to the Transnational Corporation of Nigeria Plc's listing by Introduction of 18.55 billion ordinary shares of 50kobo each at N6.00 per share. The shares which was listed on Thursday, November 23, 2006 with a market value of N111 billion is now priced at N0.50k.

Most companies listed by introduction on the NSE in the last 3 years were generally weak companies and are currently facing dire straits – MTS Plc, IHS Plc, MTech Plc, etc are currently trading below listed prices; and a few are facing current NSE sanctions for failure to meet post listing financial reporting requirements less than twenty four (24) months after listing.

There are only a few sterling example of listing via introduction – GT Bank Plc for example which listed at N10 per share in 1996 and later conducted an IPO at the onset of the banking consolidation programme; which established the bank as a value based company – and we are all living testimony as to the strength and character of this commercial lender, now one of the top three banks in Nigeria.

The parallel with Transcorp Plc should not and must not encourage a comparison with this current bid by the new Dangote Cement Plc but should raise concerns at the SEC/NSE, which has not had a history of high value listing by introductions – a traditional approach usually deployed for weaker companies seeking listing outside the primary market.

The point being made here relates to the point made earlier; the high price of listings by introduction relative to the current market realities and the rules for listing by introduction that should have safeguards to protect investors in the secondary market.

The true test of a company of Dangote’s mettle must be the primary market – the offering of the shares of the merged company, after a listing in no less than 6-12 months should address this concern.

This is not a notion unique to Nigeria or a recommendation specific to the company. There is a growing debate about the place of listings by introduction and investors protection that we must consider given our recent past.

For example, the Philippine Stock Exchange (PSE) has suspended listings by introduction, other than those applications filed before February 17, 2010 and is reviewing its rules. Companies can list their shares on the PSE by introduction as long as they agree to hold an IPO within 12 months.

The PSE said that "we are reviewing the rule on listing by way of introduction…. to make sure that the rules are consistent and clear so that issuers can be guided correctly and at the same time ensure that the investing public is fully informed of the developments with the issuers," PSE Chairman Hans Sicat said in a statement on February 2010.

The PSE bourse temporarily blocked companies from listing by introduction last February 18. While it gave no explanation for the suspension, the move came as share prices of companies that had taken this route — listing stocks without necessarily selling these to the public — skyrocketed.

The action followed a similar move by the Hong Kong Exchange to halt listing by introduction unless issuers can show they have taken steps to ensure ample liquidity and an orderly market, and until the bourse finds ways of dealing with potential price fluctuations.

At the HHE, the new practice follows an opening day surge and plunge in shares of Asian Citrus Holdings Ltd., China’s biggest orange plantation owner, that prompted investors to criticize disclosure rules.

Generally, several companies that listed their stocks by introduction in most markets; have seen dramatic increases in their share prices, raising concerns that a loophole was being used to drive up prices.

It is this point that we have yet to receive assurance on from our market regulators in Nigeria.

The deal values the newly-formed Dangote Cement Plc at around $14 billion through the listing of 15.5 billion shares at a price of 135 naira. Benue Cement shareholders will receive one share for every two Benue shares held, according to a statement from the stock exchange.

Merger documents seen by Reuters said shares in Benue Cement, which were already trading at the pre-merger price of 67.50 naira on Tuesday, would be suspended on October 22 before trading in Dangote Cement shares begins on November 5.


@Bigben

The bolded does says' BCC shareholders will receive one Dangote Cement share for every two held at BCC, therefore; it could be said that for every 1/2 of Dangote is one BCC share, so one would conclude that one BCC shares is worth one half of Dagote Cement share. If that's the case, it was stated that BCC was trading at 67.50 per share prior to pre-merger, one would deduct that for your to buy one Dangote share, BCC has to trade at 67.50 x 2 = N135.

@ manny

he already explained here >>

bigben431:

I guess the fundamental issue is that people think the company is overvalued. First shareholders will receive 1 share per 2 shares of BCC @ the Tuesday closing price of N67.50 which amounts to N135 …that’s how the share price was derived.

Dangote is under more scrutiny than any other businessman in nigeria for some reason,

if this was Otedola, Jimoh Ibrahim, Adenuga its all good and dandy. . . . .

From one man's business to every one's business.
this is certainly good for the economy as the wealth get spread among other citizens.
But in a way, what does this merger do to monopoly?? What other players are in the industry? and will those competitors have the chance to compete? If others cant really compete or have very little impact in the market, then buyers will loose cos dangote can increase the price as they want.

Mr dangote & co pls pls i just finished University i have done nysc i am looking for employment i am a nigeiran, haba stop talking about billions and sales of company stocks. u pple shld pls emply us oh we are hungry.

See as money dey fly around

The pricing is quite bougus, it may grossly be undersubscribed at the end of the day.The regulators should beware and do a futher indept analysis for public good.

This is what happens when a person gets subsidies from the gov't. And unfair business practices.

mechris:

The pricing is quite bougus, it may grossly be undersubscribed at the end of the day.The regulators should beware and do a futher indept analysis for public good.

Clearly u dont understand what is going on as do most posters. This is not an IPO, its a Merger and by the time the shares are listed by introduction the market (as inefficient as the price discovery process is) would apply its own valuation. The market is the final judge of such matters. There is no question of under subscription in this process. Whoever is advising the companies is really worth their fees.

na your time, personal republic of Nigeria, I hail oooohhhhh

The M&A between Dangote Cement and BCC - Matters Arising

You can get more details via the link: http://www.proshareng.com/news/12003

Regards.

I have some insiders in dangote cement plc company and i could inform friends of dangote vacancies and recruitment. Just follow me here www.nairaland.com/1450255/dangote-cement-plc-vacancies-recruitment