Dangote Cement to offer $90 mln shares after merger

Nigeria's biggest cement maker Dangote Cement plans to offer 13.5 billion naira ($90 million) worth of shares next week following its merger with rival Benue Cement, the company said on Monday.

Privately-held Dangote Cement and Benue, which is listed on the Nigerian stock exchange, are both majority owned by billionaire tycoon Aliko Dangote, who last month won approval to merge the two firms.

Shares in Benue Cement will be suspended on Oct. 22 before trading in the new entity, Dangote Cement Plc, begins on Nov. 5. Dangote must sell shares in the new entity in order to meet stock exchange requirements of a minimum 25 percent free-float.

Dangote Cement said in a notice published in the daily Business Day newspaper that it will offer 100 million shares in the new entity at 135 naira through a special sale of shares on Oct. 26 on the floor of the Nigerian Stock Exchange.

Benue Cement shares are already trading at the pre-merger price of 67.50 naira. Benue shareholders will receive one share in the new entity for every two Benue shares held.

- Reuters