Dangote Group to List Subsidiaries Local, International Exchanges
Dangote Group is set to list some of its subsidiaries on both the Nigerian Stock Exchange (NSE) and other international stock exchanges between this year and the end of 2007. Disclosing this at a factory visit to Obajana Cement Plc last week in Kogi State, Group Chairman, Dangote Industries Limited, Alhaji Aliko Dangote said, "starting from 2006, Dangote Group will list its companies on the Nigerian and international stock exchanges to diversify’ its ownership base to include staff, and other investors, and to enable it access further sources of capital and enhance profitability by reducing finance charge".
He stated that Dangote Group will continue in its import substitution drive saying, "our import substitution strategy will continue with bias for further backward integration in the sugar business by embarking on a programme to locally grow and process 550,000 tons of sugar at Savannah Sugar and other plantations
Dangote disclosed that its sugar company will be listed on the NSE by the end of September or October 2006. "According to him, "we want other Nigerians to have a share of the cake in the company by investing for greater returns in the future".
On its mission for the cement business, he stated that Dangote Group decided to produce cement locally to meet the growing demand for the product in the major construction hubs in the country, bearing in mind the importance of location and logistics in production and distribution of cement.
According to him, "we want to sustain brand equity in out products portfolio to increase market share and facilitate export. We want to improve business processes, governance, and structure of the institution to ensure alignment with the group’s business vision. The Group retained Mckinsey to review and advise on the Dangote 2010 plan. Pricewaterhousecoopers was also retained in relation to process improvement.
While disclosing the Group’s target in Oil and Gas during the second phase of its transformation programme between 2002-2006, he said "9 per cent share of block I in the Joint Development Zone(JDZ) of Sao Tome along with Chevron Texaco as the operator with 51 per cent and Exxon Mobil with 40 per cent. 10 per cent share of Block III in the JDZ while 6 per cent share of block 315 in Nigeria along with Statoil with 45 per cent, Petrobras with 45 per cent and other Nigerian investors with 4 per cent."
Commenting on the future of the company, he said "we want to sustain focus on creating a leading African organisation operating at international standards of excellence. We would continue to leverage Dangote’s dominant market position and entrepreneurial spirit to systematically identify and exploit growth opportunities.
We would grow revenues to US$ 2.5 billion by 2007 from excising business and the projected contribution of Obajana Cement and Benue Cement Company Plc. Over US$3 billion is expected by 2010 from the capacity built by 2007 and additional new ventures in Oil & Gas, Steel and Chemicals".
