AbdulSamad Rabiu maintains dominance in Bua Cement, increases stake by 45m shares

Chairman of Bua Cement, AbdulSamad Rabiu, has acquired additional 45 million units of the shares of the group.

This was disclosed in a notice of insider trading filed on the Nigerian Exchange Limited on Wednesday.

According to the notice, Rabiu bought 45 million shares at the rate of ₦85 per share. The deal is worth N3.825bn.

Rabiu is the ultimate majority shareholder of the organisation.

According to the 2022 audited report of the company, Rabiu was the majority shareholder of the company holding 19,044,995,225 billion shares, which was a 56.24 per cent stake of the issued share capital. He also held indirectly 645,565,918 (1.91 per cent).

In its first quarter unaudited report, BUA Cement Plc suffered a 19.14 per cent drop in profit after tax profit to N26.800bn from N33.142bn reported for the same period in 2022.

The company’s interim financial report for the first quarter ended March 2023 revealed that rising costs drove the downward trend.

In June, the International Finance Corporation said that it has invested $500 million in BUA Cement Plc, which it described as the “largest-ever investment in northern Nigeria.”

The fund would support BUA in the development of two more cement manufacturing lines in Sokoto state, with a target of 12,000 jobs.

“IFC today made its largest-ever investment in northern Nigeria, providing a financing package alongside African and European partners to BUA Cement Plc to help the company part-finance and develop two new, energy-efficient cement production lines that will create up to 12,000 direct and indirect jobs,” the statement reads.

The price of Bua Cement shares stood at ₦ 98.95 at the end of trading on Wednesday. The same price it has remained for the past six trading sessions.

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