Dubai to acquire interest in Dangote Cement

Dubai to acquire interest in Dangote Cement

Investment Corporation of Dubai (ICD), the main investment arm of the Emirate of Dubai, has agreed to purchase a minority interest in Nigeria's largest cement manufacturer, Dangote Cement plc, from majority shareholder, Dangote Industries Ltd.

Under the terms of the agreement, which was signed at a ceremony in Dubai attended by HE Mohammed Ibrahim Al Shaibani, executive director and CEO of the Investment of Corporation of Dubai and Aliko Dangote, president and CEO of Dangote Industries Limited, ICD agreed to invest US$300m to acquire a minority interest.

Dangote Cement, which has a market capitalisation of approximately US$23bn, has ambitious expansion plans to expand capacity to 60Mta by 2018, both domestically and across the African continent.

Commenting on the deal, HE Mohammed Ibrahim Al Shaibani, stated:  "We believe Sub-Saharan Africa, and particularly Nigeria, provides fantastic long term investment opportunities. In this case, Dangote Cement provides some excellent investment credentials, being a highly profitable, well capitalized and efficiently run organization, with a market leading position in the largest African economy and very well positioned to access and act on growth opportunities across the continent. Consequently, we are very pleased to be given the opportunity to invest and participate in its future growth potential."

Aliko Dangote, chairman of Dangote Cement PLC, further added: "We are pleased to welcome such a prestigious investor as the Investment Corporation of Dubai to our growing list of international, blue-chip shareholders. They share our vision of Africa that will grow to become an economic powerhouse in the coming decades as its people rise to become prosperous members of the global economy."

This is the second time a government-owned investment entity will be investing significantly in the Nigerian cement maker. Last year, the Public Investment Corporation of South Africa bought a US$293m stake in the company.