Founder of BUA Cement and Africa's 6th Richest Man Is Set To Earn N39.4 Billion On Dividend Alone This Year.

Last week, Nigeria's second-largest cement manufacturing company, BUA Cement, disclosed that N70 billion will be paid as dividends to investors for the period which ended December 31st, 2020.

The company announced via their website on the Nigerian Stock Exchange that it's set to reward investors with N2.067 for every one share for the 33,864,354 ordinary shares of the company.

This dividend payment makes the founder of BUA group and the 6th richest man in Africa, N39.4 billion richer, as he is one of his company's biggest investors.

Abdulsamad Rabiu, who's the founder of the leading cement manufacturing company, is also the single majority shareholder of his business, with 56.24 percent ownership of the company. This translates to about 19,044,995,22 ordinary issued shares out of the 33,864,354 shares owned by the company. According to the company's audited statement, Abdulsamad also owns an indirect stake of close to 12.2 billion shares through BUA International Limited, Damnaz Cement Company Limited, and BUA Cement Company Limited.

His son owns over 40 percent of the remaining company shares, making only a tiny float available to the public.

According to a valuation by Forbes, the 60-year-old has an estimated net worth of $5.5 billion, which is mainly from his cement business. His wealth went up by a staggering 77 percent in one year, as the worth of his shares in the cement company doubled, taking him from number 8 on the list to 6th, and making him the biggest gainer on the list.

The dividend to be paid by BUA Cement is 18.11 percent more than last year's N59.26 billion paid to investors. BUA Cement shares currently trade at N73.5 per share on the Nigerian Stock Exchange, with a dividend yield of 2.81 percent. The company’s market capitalization is N2.489 trillion as of the close of the market on Tuesday.

BUA cement announced that its profits 19.4 percent year-on-year to stand at N72.34 billion for 2020 financial year, compared to the N60.34 billion it realized the year before in 2019.