Femi Otedola, the prominent Nigerian billionaire, has recently taken a significant leap into the world of cement as he acquired shares worth an impressive N6 billion in Dangote Cement Plc, Premium Times reports, citing sources.
This latest addition to his diverse investment portfolio comes at a time when Dangote Cement has soared to new heights, surpassing Airtel Africa to become Nigeria’s leading company by market capitalization, currently valued at a staggering N8.35 trillion.
The shares, strategically procured in Mr Otedola’s name, highlight his continued influence in shaping Nigeria’s corporate space.
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Dangote Cement, Sub-Saharan Africa’s largest cement maker, has showcased remarkable performance, boasting an 81.4% return in the last 52 weeks and holding 17.04 billion outstanding shares. The majority of these shares, approximately 85.8%, are under the control of Dangote Industries Limited, overseen by Africa’s wealthiest individual, Aliko Dangote.
It’s noteworthy that Dangote Cement engaged in two tranches of share repurchase between 2020 and 2022, buying back 166.9 million shares to fortify its stock valuation.
Already holding a significant stake in Geregu Power Plc, a power-generating company with a market value of N1.2 trillion, Femi Otedola has proven his versatility in navigating various sectors. In 2021, his strategic moves included acquiring substantial volumes of FBN Holdings shares, the parent company of Nigeria’s oldest commercial bank, First Bank. Through a series of off-market trades, Otedola emerged as the largest shareholder, momentarily propelling FBN Holdings beyond the N1 trillion market value mark.
However, the company experienced a 2.53% decline on Thursday, settling at N967.4 billion.
Adding to his series of astute investments, Otedola made a significant purchase of Transnational Corporation of Nigeria shares in April of the same year. Amassing 2.6 billion units, he secured a considerable shareholding of 6.3%, positioning himself to become the top shareholder of the conglomerate.
The ownership dynamics, however, swiftly changed as Tony Elumelu, the largest shareholder of United Bank for Africa, strategically increased his stake in Transcorp from 2.07% to 25.9%, firmly establishing his position at the helm of Transcorp’s ownership ladder.
In a surprising twist, Otedola, known for his shrewd business acumen, eventually sold his stake in Transcorp to Elumelu. This move showcased the fluid nature of ownership in the dynamic world of Nigerian business, highlighting the strategic interplay between influential stakeholders.
Though a lot of criticisms have trailed Otedola’s acquisition of Dangote Cement shares, many see it as a smart move to expand his diverse investment portfolio, which not only reflects his dynamism and strategic acumen but also solidifies his position as one of Nigeria’s most influential and savvy business leaders.