Business and Finance
1-S.Africa’s PIC buys stake in Nigeria’s Dangote Cement
- * 255.6 mln Dangote Cement shares sold to PIC for $289 mln
- * PIC investing outside South Africa for growth
- * Dangote Cement hits fresh highs of 210 naira (Adds name of buyer, background)
LAGOS, – Dangote Industries, majority shareholder in Dangote Cement, on Monday sold 1.5 percent of its stake in Nigeria's biggest listed firm to South Africa's Public Corporation (PIC) for $289.3 million.
Renaissance Capital, broker to the deal, said Dangote Industries sold 1.5 percent of its 95 percent stake in Africa's biggest cement producer at 179 naira per share. Dangote Cement shares, which make up a third of the Nigerian stock market, traded flat on Monday at 210 naira, staying at an all time high.
Shares in Dangote cement, majority owned by Africa's richest man Aliko Dangote, have surged to new record highs since last month, valuing it at around 3.5 trillion naira ($22 billion). Dangote himself is currently the 25th richest man in the world, worth $20 billion, according to Forbes' latest estimate.
The PIC, which manages pension fund for the South African government, is trying to diversify its investment out of its home market to tap into other faster growing African markets.
Last year, the PIC bought 19.58 percent of pan-African lender Ecobank Trasnational Incorporated (ETI) for $250 million, its first major investment outside of South Africa. ($1 = 159.70 naira) (Reporting by Chijioke Ohuocha; Editing by Tim Cocks)