Dangote to Step Down as Chairman of Dangote Cement amidst Plans to List on London Stock Exchange
Alhaji Aliko Dangote is not sitting on his laurels as Africa’s richest man. The self-made billionaire, albeit with a little government help, has indicated that he is going to list his multi-billion dollar cement company on the London Stock Exchange (LSE). The cement company is only a segment of the multi-billion dollar business group that also has interests in Flour and Sugar.
Dangote told the Financial Times of London that there are plans to list in London sometime next year. Morgan Stanley and JP Morgan have already been appointed as financial advisers for the transaction.
The listing will see Dangote relinquish his role as Chairman of the company in order to meet the stringent listing requirements of the London Stock Exchange.
Dangote told the FT, “My plan is to have different faces [on the board], the face of the chairman will not be Aliko Dangote, it will be somebody else, a professional who is well-respected within investment circles.”
When listing equity securities on the LSE’s Main Market, companies have the choice of two types of listing – a Premium (formerly Primary) Listing and a Standard (formerly Secondary) Listing.
Dangote Cement has opted for a premium listing.
According to the LSE, “A Premium Listing is only available to equity shares issued by trading companies and closed and open-ended investment entities. Issuers with a Premium Listing are required to meet the UK’s super-equivalent rules which are higher than the EU minimum requirements. A Premium Listing means the company is expected to meet the UK’s highest standards of regulation and corporate governance – and as a consequence may enjoy a lower cost of capital through greater transparency and through building investor confidence.”