Dangote Cement Plc has chosen to implement a share buy-back program as a strategic measure aimed at tackling its high leverage and bolstering investor confidence.
By repurchasing shares, the company reduces its total assets, leading to improved metrics such as return on assets and return on equity when compared to not engaging in share repurchases.
Additionally, a reduction in the number of shares allows for faster growth of earnings per share (EPS) as revenue and cash flow increase.
By repurchasing shares, Dangote Cement Plc. aims to improve the efficiency of its financing and balance sheets, resulting in a reduction in the cost of capital and an enhancement of investors' value.
