Amsons bids to acquire Kenya’s Bamburi Cement in major takeover deal
TLDR
- Tanzania's Amsons Group offers $182.89 million to acquire 100% stake in Kenya's Bamburi Cement from Holcim.
- Amsons Industries (K) Ltd initiates takeover bid at $0.51 (KES65) per share, presenting a 44.44% premium.
- Acquisition may result in delisting of Bamburi Cement from the Nairobi Securities Exchange (NSE).
Tanzania’s Amsons Group, a family-owned conglomerate, has made a $182.89 million offer to buy a 100% stake in Kenya’s Bamburi Cement from the Swiss multinational Holcim.
The Tanzanian firm launched a takeover bid through its Kenyan subsidiary, Amsons Industries (K) Ltd, offering shareholders $0.51 (KES65) per share, a 44.44% premium on the Bamburi share closing price on Wednesday.
The acquisition could potentially lead to the local cement manufacturer being delisted from the Nairobi Securities Exchange (NSE).
Key Takeaways
The acquisition bid comes four months after Bamburi Cement exited the Ugandan market by selling its stake in Hima Cement to Uganda’s Sarrai Group and Rwimi Holdings. Bamburi is the largest cement maker in Kenya, controlling about 30% of the market share. Edha Nahdi, Amsons Group's managing director, stated that the acquisition is part of the company’s plans to expand into East Africa’s largest economy. Founded in 2006, Tanzania’s Amsons Group has interests in cement, real estate, oil and gas, and wheat flour across Malawi, Zambia, Mozambique, Burundi, and the Democratic Republic of Congo. The company has an annual turnover of over $1 billion.
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