According to a report in the Financial Times, the ICD has invested US$300 million in the Nigerian company.
The Financial Times is reporting that the Investment Corporation of Dubai, the state holding company, is acquiring a minority stake in Dangote Cement. With an investment of US$300 million, this will give the ICD the opportunity to diversify its portfolio and move into the West African market. The investment marks the latest movement in what the FT calls ‘a string of acquisitions by state-owned groups and sovereign wealth funds in sub-Saharan Africa after years of shunning the region’.
Dangote Cement has a market capitalisation of about US$23 billion and is on course for considerable growth as it expands capacity from about 35 million tpa to more than 60 million tpa over the next few years.
Meanwhile, in Nigeria, Dangote has launched a new 32.5 grade cement to capture the plaster market, following the Standard Organisation of Nigeria’s decision to specify that 32.5 grade cement was sufficient for plastering only and not suitable for structural use. Dangote Cement has been openly supportive of the SON’s decision, having previously taken the decision to produce 42.5-grade cement as its basic product.
SJ by worldcement
