Aliko Dangote, the richest man in Africa and the founder of Dangote Cement Plc, has announced plans to repurchase up to 10% of the company's outstanding shares for a total of N406 billion ($917 million).

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One of the resolutions that will be reviewed by the major cement manufacturer at its Extraordinary General Meeting (EGM) on Tuesday, December 13, at Zinna Hall, Eko Hotel & Suites in Lagos, correlates with the next stage of its expansion goals.

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The cement producer will repurchase 1.704 billion of its shares, or 10% of its 17.04 billion outstanding shares, at the going market price following the EGM's ratification of the resolution.

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Dangote Cement noted that the shares will be repurchased from profits and that the repurchased shares may be kept as treasury shares or canceled, resulting in a fall in share capital.

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It also stated that none of its directors, including Dangote, who has an 86-percent stake in the cement company, will be taking part in the share buyback program.

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Dangote Cement is Africa’s largest cement producer, with a 51.55-million-tonne-per-year production capacity spread across ten countries. Africa’s richest man Aliko Dangote owns 86 percent of Dangote Cement through his manufacturing group Dangote Industries Limited.

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Nearly 10 months ago, the cement behemoth repurchased a total of 126,748,153 shares, or 0.74 percent of its issued and fully paid ordinary shares, at an average price of N276.89 ($0.667) per share.

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The company noted that the share buyback decision, which is consistent with its corporate strategy, is a conscious endeavor by the board to improve intrinsic value and an indirect means to increase its return on equity and shareholder value.

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