Kenya's Bamburi Cement completes $84m sale of Uganda unit

AFRICAN STOCKS AND FINANCEMarch 9, 2024 at 9:06 PM UTC

TLDR

Bamburi Cement sells 70% stake in Hima Cement for $84 million
Transaction completed with consortium Sarrai Group and Rwimi Holding
Hima Cement will no longer be a subsidiary of Bamburi

Bamburi Cement has finalized the sale of its 70% stake in its Ugandan subsidiary, Hima Cement, for an estimated $84 million (Sh12 billion), providing a significant cash flow boost.

The Nairobi Securities Exchange-listed company confirmed that the sale to a consortium comprising Sarrai Group and Rwimi Holding was concluded on March 5, following the receipt of all necessary regulatory and shareholder approvals. Consequently, the Uganda unit will no longer operate as a subsidiary of Bamburi.

"Bamburi is pleased to announce the successful completion of the transaction, with all conditions precedent satisfied," stated the cement maker. "As a result, Bamburi has fully divested its proprietary interest in Hima Cement Limited, which will no longer be reported as a subsidiary of Bamburi."

Key Takeaways

The total value of the transaction amounted to $120 million (Sh17.05 billion), although this figure was subject to adjustments to be made at or following the completion of the deal. This divestiture aligns with Bamburi's parent company Holcim's strategy to withdraw from fragmented markets and focus on countries where it holds a leading position. Additionally, Holcim is in the process of selling its 65 percent stake in its Tanzanian subsidiary, Mbeya Cement Company, to Amsons Group, as part of its broader strategic realignment efforts. These moves reflect a concerted effort by the multinational to streamline its operations and optimize its market presence in key regions.

Bamburi Cement

Hima Cement

NSE

Stocks

Acquisition

Kenya

Uganda

Finance