Africa's richest man Alhaji Aliko Dangote will have to reduce his majority shareholding in cement manufacturer Dangote Cement PLC (Dancem) by October 2014. This is to comply with listing regulations at the Nigerian Stock Exchange (NSE), according to a report by online media 4-Traders.
The report said Dangote Industries Ltd. has up till October 26, 2014 to sell down or dilute its stake in Dancem. Dangote Industries is Alhaji Aliko Dangote's holding company and core investor in the cement company.
The reduction in shareholding will enable Dancem to comply with the free float rule at the NSE. Companies listed on the NSE are required to maintain a minimum free float of 20% and 15% for companies on the main board and second-tier board respectively. Dancem is quoted on the main board as NSE's most capitalized stock, the report said.
NSE's updated free float record indicated that Dancem has a free float of 4.93%. This is 15.07% below the minimum required 20%, 4 Traders said.
Dangote Industries may have to divest more than 2.3 billion ordinary shares. The holding company currently holds some 93% majority equity stake in Dancem, the report said.
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