BUA Shareholders Lose N281bn Amid Rift With Dangote

BUA Cement Plc shares had dropped 7.76 per cent from N107 to N98.7 per share thereby causing the cement manufacturer to lose N281bn in a single day.

This is the worst fall in its share price since October 6, 2023, when its share price traded at N94.

Analysis conducted by THE WHISTLER showed that BUA’s shares closed last week at N107 which boosted its market capitalisation to N3.62trn but after its shares dropped by the close of trade on Monday, BUA’s market capitalisation dipped to N3.34trn.

This resulted in N281bn loss in the company’s market capitalisation.

The development is coming amidst an unsettled rift between BUA’s Chairman, Abdul-samad Rabiu, and the Chairman of Dangote Group, Aliko Dangote.

BUA, Nigeria’s second-largest cement manufacturer reduced its ex-factory price from N4,000 to N3500 with effect from October 2 2023, thereby triggering a cement war with rival, Dangote Cement.

As competition intensified, Dangote accused BUA of sponsoring a media campaign on economic sabotage.

Dangote took the time to deny that the company is being probed over alleged illegal foreign exchange transaction amounting to $3.4bn during the leadership of Godwin Emefiele as Central Bank of Nigeria governor.

“We wish to re-emphasize that foreign exchange for these projects were sourced strictly from the Interbank Foreign Exchange Market in compliance with the CBN approvals and press release dated February 18, 2015,” Dangote said.

However, BUA denied wrongdoing and accused Dangote of several attempts to run the company out of business.

“While we may share the marketplace, we need not share malice. We have nothing to do with your self-inflicted issues. Blame no one but yourself.” BUA said.