Aliko Dangote, the founder of Africa’s most diverse manufacturing conglomerate, Dangote Industries Limited, is expected to earn a tantalizing N13 billion dividend for the fiscal year 2020 of its stake in Dangote Sugar Refinery Plc.
Dangote who is Africa’s richest man with a total wealth valued at $ 16.5 billion (according to billionaire Bloomberg index) is expected to earn N 1.50 per share on its direct and indirect holdings in Dangote Sugar.
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The billionaire is the sole majority shareholder of his integrated sugar company, with a direct stake of 653,095,014 units and an indirect stake of 8,122,446,281 ordinary shares, which he owns through Dangote Industries Limited, a conglomerate manufacturer who also has private businesses operating in the food manufacturing, fertilizer, petroleum and other industries.
Recall that the board of directors of the Dangote sugar refinery, in its verified statement, proposed a final dividend of 1.5 N per share to its shareholders, with the total holdings of Dangote of 8,775,541,295 issued shares of company, it is expected to earn a mega dividend of nearly 13.2 billion naira.
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In case you missed it
- The Dangote sugar refinery achieved an impressive financial performance in 2020, with the company reporting 33.0% profit growth to N29.8 billion in fiscal 2020.
- This strong performance is due to the increased demand for the company’s products driven by the border closure in August 2019, as it saw strong volume growth in its sugar supply of 50 kg in 2020.
- However, the company’s profit was put under pressure by an increase in operating costs due in part to the continued scarcity of foreign exchange, as well as increased financial costs, which can be largely attributed to the loss. exchange rate in its ordinary business operations.
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What you should know
- A recent report revealed that Aliko Dangote lost a total of $ 1.20 billion in February, with the wealth of the richest black man on the planet dropping from $ 17.8 billion on January 31, 2021. to $ 16.6 billion on February 28.
- The decline in his net worth was due to the drop in the share price of his flagship company, Dangote Cement Plc (DCP), as well as the share price of its integrated sugar business, Dangote Sugar Refinery Plc (DSR ).
- However, despite the declaration of a better-than-expected dividend of N 1.50 per share in 2020 (N 1.10 per share: 2019), Dangote Sugar shares are worth N 18.0 per share, i.e. 17% less. than the peak price. of N21.70 recorded this year.
- At this price, the market capitalization of the Dangote sugar refinery is valued at 218.6 billion naira.