Africa’s Richest Man Pockets $706 Million In Dividends From Cement Company
Written by Mfonobong Nsehe | From Forbes
Africa’s richest man, Aliko Dangote, has pocketed $706 million in dividends from profits made by his crown jewel, Dangote Cement in 2013.
Dangote Cement PLC, which held its annual meeting in Lagos on Friday, recorded sales of $2.4 billion, up 29.4% from $1.85 billion in 2012. Profit before tax stood at $1.18 billion compared with $807 million a year ago, while profit after tax rose to $1.25 billion. Dangote Cement is a recipient of a tax holiday from the Nigerian government until 2016 as some sort of incentive and so the company received a N10.4 billion ($64.4 million) tax credit from the government, which was added to their bottom line, hence the reason the after tax profits are even higher.
The strong results led the board to propose a dividend payment of N7 ($0.043) per ordinary share, which was approved by the shareholders during the Annual General Meeting. The dividend was paid on Monday.
Dangote, who owns roughly 92.3% (or 16.2 billion ordinary shares) of Dangote Cement, held in his name and through his wholly-owned holding company, Dangote Industries, will pocket more than N113.6 billion, just over $700 million, using the prevailing exchange rate of $1 = N161. Personal income tax rates in Nigeria range from 5% to 15%, meaning Dangote will likely come out ahead at least $600 million if not more.
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