Dangote Cements Its Position As African Giant
On the back of successive impressive financial performance s , Africa's largest cement producer Dangote Cement Plc has attracted an investment of USD289mn from the South African pension fund Public Investment Corporation (PIC) , who now own s a 1.5% stake in the company. This move reflects the positive investor sentiment Dangote has been eliciting since the beginning of 2013, which has seen its stock prices rise 63.9 % to in the year to date (11 June 2013) . Making up over 30% of the Nigerian Al l- Share Index, Dangote's rise has underpinned a rally in the broader Nigerian equity market, informing BMI 's Country Risk team's optimistic view on Nigeria ( see ' Equity Rally Becoming Broader-Based' 10 June).
This impressive appreciation in share price has seen the company's market capitalisation also increase dramatically. The US $ 289mn investment from the Public Investment Cor poration of South Africa would give the company a market capitalisation of USD19.2bn. This is slightly below the current estimations on Dangote's market capitalisation which stand at USD22.4bn, making the company the world's second largest cement producer in terms of market capitalisation after Holcim .
Dangote's rise comes after a series of impressive financial performances over the past few years. In FY2012 Dangote reported EBITDA of US$1.1bn, with an EBITDA margin of 58.3% (compared to 55.4% in FY2011) . Bloomberg consensus estimates Dangote's 2013 EBITDA will be US$1.58bn, a 44% increase, which would be in line with the meteoric rise the company has seen over the past four years - in 2009 EBITDA stood at just US$388.6mn.
|Giant Dangote's Outperformance Pushes Up All-Share|
|Dangote Cement and Nigeria All-Share Index, Normalised as of 01 January 2013|