"I Focus on Long-Term Wealth": Femi Otedola Explains Why He Bought Dangote Cement Shares
- Femi Otedola has issued a detailed explanation of why he chose to buy shares of Dangote Cement
- The billionaire, in an official statement, said the move is strategic and underscores his confidence
- He also said that the company’s capabilities are essential for regional economic integration and growth
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Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
Femi Otedola, a Nigerian billionaire, has explained why he chose to tap into the shares of the cement company owned by Aliko Dangote.
Source: UGC
Legit.ng reported that in a deft move to strengthen his investment portfolio, Otedola, who is Nigeria's fourth richest man, acquired shares in Dangote Cement.
The development followed his re-entry into Forbes Africa’s richest list, where he is now worth about $1.2 billion.
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A strategic move for Otedola
According to an official statement issued by Otedola, the strategic investment underscores his confidence in Dangote Cement’s potential to generate foreign exchange for the country and his dedication to supporting businesses contributing to Nigeria’s economic resilience.
He noted that the expansion of Dangote Cement, including the new 6 million-ton plant in Itori, Ogun State, enhances its export capacity and emphasizes the company’s contribution to Nigeria’s economic diversification.
The billionaire also said that Dangote Cement’s export capabilities and extensive operations across Sub-Saharan Africa are essential for regional economic integration and growth.
He said:
“My investment is a testament to my confidence in its potential to propel Nigeria’s and Africa’s industrial and economic development.”
Otedola added that this aligns with his vision of long-term wealth preservation and the belief that shareholders should be the primary beneficiaries of a company’s success.
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“Dangote Cement’s unique position with two export terminals offers a substantial opportunity to earn foreign exchange, crucial for Nigeria’s economy. This, along with the company’s pan-African presence, makes it an ideal investment choice.”
He also said that his decision was driven by Dangote Cement’s track record of dividend payments, which has exceeded N2.1 trillion in recent years, and its commitment to sustainable business practices resonates with these principles.
Investment strategy prioritises well-managed companies
Otedola said his investment strategy prioritizes well-managed companies with strong governance and operating under the principle that no individual should be larger than the company.
He said:
“In my investment decisions, I focus on long-term wealth preservation and ensuring shareholders are the ultimate beneficiaries of a company’s success.”
“Companies like Dangote Cement, which consistently deliver value to their shareholders, are fundamental for sustainable economic growth.
My investment reflects my belief in its capacity to continue providing significant returns and my commitment to businesses that prioritize their shareholders.”
The billionaire said companies like Dangote Cement, adhering to Environmental, Social, and Governance (ESG) compliance principles, are more likely to ensure transparency, accountability, and long-term value creation.
“Dangote Cement’s strong corporate governance and impressive ESG compliance track record make it an ideal investment choice. It represents the type of company that not only contributes to Nigeria’s industrial strength but also aligns with my vision for ethical and sustainable business practices.”
Charles Abuede, a financial analyst said that Femi Otedola's recent investment in Dangote Cement has propelled the company's market capitalization, resulting in a remarkable over 70% year-to-date gain on the Nigerian Stock Exchange.
This surge, he said, has generated positive sentiment in the market, potentially influencing overall investor confidence amidst the profit-taking activity being witnessed in recent time.
In addition to this, he said that the increased liquidity stemming from heightened trading activity in the stock is expected to benefit the Nigerian stock market with further gains on the benchmark index.
He added, "Otedola, as an investor, stands to gain substantial profitability and witness a boost in his investment portfolio's overall value just like we can refer to the likes of Geregu and FBNH.
"Meanwhile, regardless of the fact that we await public disclosure of this trading activity on the exchange, his newfound influence as a major shareholder in Dangote Cement could extend to strategic decisions and corporate governance matters."
Otedola becomes fourth richest man in Nigeria
Legit.ng earlier reported that Otedola had was ranked the fourth richest man in Nigeria amid bullish Nigerian stock performance.
According to the latest update of the Forbes Billionaire Index, Otedola has a net worth of $1.2 billion after making over $6 million on Thursday, January 11, 2024.
His new net worth placed him as the 2,353rd richest man in the world.
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Source: Legit.ng
