At the FT Africa Summit, Africa’s richest man, Aliko Dabgote revealed that Bank of America Merrill Lynch and Standard Chartered could be among the banks to help the company organise a London share sale, scheduled to take place after Nigeria’s general elections in 2019.
Dangote Cement, one of Nigeria’s biggest companies, will spend heavily on expansion, with $350 million being set aside for capital projects which includes building of export facilities at Nigeria’s seaports to boost shipments to neighbouring West African countries.
Back in 2010, Dangote Cement considered raising equity in London with the help of Goldman Sachs Group Inc, JP Morgan Chase & Co and Morgan Stanley. Before the move was abandoned, the banks had prepared a sale that had the potential to raise $5 billion. Plans to revive the initiative encouraged the company to appoint former CEO of Xstrata Plc, Mick Davis and Cherie Blair, a British lawyer to its board in April.
The cement maker which opted for London rather than Lagos due to the deeper pool of investors, is expected to raise about $1 billion from the share sale. Dangote also recently announced the sale of its 150 billion Naira commercial paper issuance programme.