Jereaghogho Efeturi Ukusare

Africa’s biggest producer of cement, Dangote may carry out its long-planned listing of shares in London after the elections in Nigeria early next year. Dangote cement is considering expansion through takeovers.

“We are working on it and we’ll look at it in 2019,” Edwin Devakumar, group executive director at Dangote Industries Ltd. said in an interview near Lagos, Nigeria’s commercial capital, on Wednesday. “We have grown to this extent mostly via greenfield investments. To grow much more, we’d probably have to do it via acquisitions.”

Some UK banks have approached Dangote Industries to arrange the initial public offering. At the moment, no one has been mandated and no decision has been reached on how much to raise. About 15 percent of Dangote Cement’s shares are listed in Lagos, where it has a market value of 3.9 trillion naira ($10.8 billion). The stock is down 0.9 percent this year. Controlled by Africa’s richest man, Aliko Dangote,  the company considered raising equity in London back in 2010. At the time, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley helped it prepare a sale that could have raised as much as $5 billion before the move was abandoned.

Dangote Cement is looking to expand outside Africa into markets such as Brazil, Peru and Nepal, according to Devakumar. Dangote Industries is a holding company for billionaire Aliko Dangote’s interests which include sugar, flour, oil refining and petrochemicals as well as cement.

The revival of the IPO plans led to Dangote Cement appointing former Xstrata Plc CEO Mick Davis and Cherie Blair, a British lawyer, to its board in April. “That was another step toward the listing,” said Devakumar.

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