Dangote Spurs Demand for BCC Shares

Dangote Spurs Demand for BCC Shares
16 February 2004

Investors have started responding to the on-going restructuring in Benue Cement Company PLC, with increased demanded for shares of the cement manufacturing company.

Since it took over the management of the company following the acquisition of 35.39 per cent of the Federal Government shares from the Bureau of Public Enterprises (BPE), the Dangote Group has been restructuring the company in order to enhance its operational efficiency with what obtains in cement companies in other parts of the world.

"Investors are enthusiastic and hopeful that Dangote’s acquisition as the core investor will boost the fortunes of BCC. The impact of Dangote is already being felt by the investing public because they have begun to demand for the company’s shares unlike before, and therefore, pushing up the shares price, (now peaking at N4.79 per share). People want it, and they can’t get it," Managing Director of Dependable Securities Limited, Mr CSU Anyanwu, disclosed.

This, he said, is a good omen to the company, and the sub sector. While noting that the company has not been doing so well in recent years due to four years of shot down of production over the privatisation impasse between the stakeholders, nevertheless, BCC, he noted,is back on stream. According to him, in the long run, as the firm begins to perform well, it will further drive up the shares price more than the current offers. Discerning investors, he stressed, ought to know where to put their money. BCC is a good place to put your money. Shareholders who have held the shares until now should hold onto it especially now that the company’s fortune seems to be turning around. This is no time to sell it for reasons other than profitability, he said.

Published under Cement News