Aliko Dangote, founder and president of Dangote Group, says he is planning to list his cement business on the London Stock Exchange for the second time.
The renewed interest comes eight years after the
industrialist first attempted to list the cement business on the London bourse
in 2018, but faced several challenges.
Dangote told Financial Times that Dangote Cement, with a
market capitalisation of $13 billion, had entered the “busiest period” of his
life.
Dangote said recent changes to the United Kingdom’s listing
rules influenced the decision to revive the plan as they have “brought down
minimum listing requirements.”
“We want to do a dual listing. We have been thinking about
it for seven to 10 years,” he said.
In a move described as “a much-needed boost for the UK
market”, about 10 percent of the shares in the company would be sold on the UK
bourse.
Quoting “people familiar with the matter”, the FT reported
that the appointed advisers for the proposed transaction include JP Morgan
Chase, Citigroup, and Standard Bank.
The cement producer had already appointed Cherie Blair and
former Xstrata CEO Mick Davis as independent directors to its board in 2018, in
preparation.
“Stringent requirements as well as distractions, including
the construction of a $20 billion dollar in Nigeria, now producing 650,000
barrels a day, meant the listing never went ahead,” FT reported.
The British daily newspaper reported that the planned London
listing could take place around September, subject to market conditions and
investor demand.
Dangote announced his plans to increase annual cement
production from 60 million tonnes to 100 million tonnes by 2030.
He said work in Nigeria had already begun on a “plant for
6mn tonnes, with another 6mn tonnes to follow”, all for export.
The billionaire also recalled previously considering a bid
for Arsenal F.C., his favourite club, before prioritising completing the oil
refinery project, claiming to “have missed the boat.”
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