The
President/Chief Executive of the pan-African conglomerate, the Dangote Group,
Aliko Dangote, has become the first African entrepreneur to lay claim to a
$20bn fortune, thus becoming one of the 25 richest men in the world.
President/Chief Executive of the pan-African conglomerate, the Dangote Group,
Aliko Dangote, has become the first African entrepreneur to lay claim to a
$20bn fortune, thus becoming one of the 25 richest men in the world.
This is
on account of the stock value of his largest holding, Dangote Cement, leaping
about three-fourths since March when Forbes released its annual ranking of the
world’s richest people.
on account of the stock value of his largest holding, Dangote Cement, leaping
about three-fourths since March when Forbes released its annual ranking of the
world’s richest people.
Dangote’s
93 per cent stake in the cement company is now worth $19.5bn, according to the
magazine.
93 per cent stake in the cement company is now worth $19.5bn, according to the
magazine.
Dangote
Cement becomes the first Nigerian company to achieve a market capitalisation of
over $20bn.
Cement becomes the first Nigerian company to achieve a market capitalisation of
over $20bn.
Added
to this are his controlling stakes in other publicly-listed companies like
Dangote Sugar and National Salt Company of Nigeria, and his significant
shareholdings in other blue-chip companies like Zenith Bank Plc, UBA Group and
Dangote Flour; his extensive real estate portfolio, jets, yachts and current
cash position, which includes more than $300m in recently-awarded Dangote
Cement.
to this are his controlling stakes in other publicly-listed companies like
Dangote Sugar and National Salt Company of Nigeria, and his significant
shareholdings in other blue-chip companies like Zenith Bank Plc, UBA Group and
Dangote Flour; his extensive real estate portfolio, jets, yachts and current
cash position, which includes more than $300m in recently-awarded Dangote
Cement.
Forbes
reported that the Nigerian billionaire was now richer than Russia’s richest
man, Alisher Usmanov; India’s Lakshmi Mittal; and running neck and neck with
India’s Mukesh Ambani.
reported that the Nigerian billionaire was now richer than Russia’s richest
man, Alisher Usmanov; India’s Lakshmi Mittal; and running neck and neck with
India’s Mukesh Ambani.
According
to the magazine, he is catching up to such Americans as Google’s billionaire
founders, Larry Page and Sergey Brin.
to the magazine, he is catching up to such Americans as Google’s billionaire
founders, Larry Page and Sergey Brin.
It will
be recalled that Dangote Cement had recorded an unprecedented surge in its
share price largely due to market response to the company’s impressive results
in the first quarter of this year.
be recalled that Dangote Cement had recorded an unprecedented surge in its
share price largely due to market response to the company’s impressive results
in the first quarter of this year.
The
cement manufacturer’s un-audited results for the three months ending March 31,
2013, had showed that the company’s pre-tax profit rose to $339m, representing
an 80.6 per cent increase from last year, and a strong indicator of the
company’s future earning potential.
cement manufacturer’s un-audited results for the three months ending March 31,
2013, had showed that the company’s pre-tax profit rose to $339m, representing
an 80.6 per cent increase from last year, and a strong indicator of the
company’s future earning potential.
The
results also indicated a 79.5 per cent rise in its earnings per share over the
corresponding period last year.
results also indicated a 79.5 per cent rise in its earnings per share over the
corresponding period last year.
The
Head of Investor Relations in the United Kingdom, Dangote Cement, Mr. Carl
Franklin, explained in an email response to Forbes that the company’s share
boost in the first quarter of 2013 was because it had a huge increase in demand
across Nigeria, considerable improved gas supply and ramped up capacity.
Head of Investor Relations in the United Kingdom, Dangote Cement, Mr. Carl
Franklin, explained in an email response to Forbes that the company’s share
boost in the first quarter of 2013 was because it had a huge increase in demand
across Nigeria, considerable improved gas supply and ramped up capacity.
Franklin
said, “So, Q1 was the first sign of just how profitable we can be in Nigeria.
The amazing thing is that 66 per cent of our gas-fired production in Q1 was done
at 84 per cent gas. Imagine what would happen to margins if we did the same
amount at 95 per cent. This has given investors a good sense of what we can
really do when everything goes in the right direction.
said, “So, Q1 was the first sign of just how profitable we can be in Nigeria.
The amazing thing is that 66 per cent of our gas-fired production in Q1 was done
at 84 per cent gas. Imagine what would happen to margins if we did the same
amount at 95 per cent. This has given investors a good sense of what we can
really do when everything goes in the right direction.
“It’s
certainly a landmark for a Nigerian company and we’re proud to be the first to
achieve it. Obviously, we are focusing on building long-term and sustainable
value for shareholders through our investments in Nigeria and Africa. Nigeria
is a very entrepreneurial country and I can assure you that other companies
will follow us in achieving this.”
certainly a landmark for a Nigerian company and we’re proud to be the first to
achieve it. Obviously, we are focusing on building long-term and sustainable
value for shareholders through our investments in Nigeria and Africa. Nigeria
is a very entrepreneurial country and I can assure you that other companies
will follow us in achieving this.”
Forbes in its report reasoned that other companies
might eventually achieve this, but it was going to take a bit of time.
might eventually achieve this, but it was going to take a bit of time.
Dangote
Cement currently accounts for more than a quarter of the total market capitalisation
of the Nigerian Stock Exchange. The second largest company on the NSE is
currently Nigerian Breweries Plc, West Africa’s largest manufacturer of
alcoholic and non-alcoholic beverages, which has a market capitalisation of
$8.5bn.
Cement currently accounts for more than a quarter of the total market capitalisation
of the Nigerian Stock Exchange. The second largest company on the NSE is
currently Nigerian Breweries Plc, West Africa’s largest manufacturer of
alcoholic and non-alcoholic beverages, which has a market capitalisation of
$8.5bn.
Dangote
made a debut on the Forbes billionaires list in 2008 with a fortune pegged at
$3.3bn. His fortune dropped to $2.5bn in 2009 and plunged further to $2.1bn in
2010.
made a debut on the Forbes billionaires list in 2008 with a fortune pegged at
$3.3bn. His fortune dropped to $2.5bn in 2009 and plunged further to $2.1bn in
2010.
His
fortune surged 557 per cent in 2011 to $13.8bn after he took Dangote Cement
public. Dangote dropped to $11.2bn in last year’s rankings, but rebounded at
$16.1bn this year. Since March, his fortune has jumped another 30 per cent.
fortune surged 557 per cent in 2011 to $13.8bn after he took Dangote Cement
public. Dangote dropped to $11.2bn in last year’s rankings, but rebounded at
$16.1bn this year. Since March, his fortune has jumped another 30 per cent.
Dangote
started building his fortune over three decades ago after taking a loan from
Sanusi Dantata and started trading in commodities like flour, sugar and cement.
started building his fortune over three decades ago after taking a loan from
Sanusi Dantata and started trading in commodities like flour, sugar and cement.
Source: Punch
