Shareholders of Bamburi Cement agreed to transfer 350.4 million shares to Tanzania’s conglomerate Amson’s Group in a buyout deal that might lead to the potential delisting of the cement manufacturer.
- The takeover process gained traction on 18th December 2024, when 137.1 million shares worth KSh 8.9 billion were transferred to Amsons in a block trade.
- According to the daily price list by the Nairobi Securities Exchange, 212.7 million shares were transacted a day later, bringing the total shares acquired to 350,407,245 to represent 96.54% of the total shareholding.
- The over 90% subscription grants Amsons the option to compulsorily buyout any remaining shareholders for a consideration equal to the prevailing market price.
According to a public notice by Amsons Industries (K), minority shareholders retained 12.6 million shares, representing 3.46% of the total shareholding. The competing offeror – Savannah Clinker – withdrew the offer, just hours before the closure of the acceptance date on 5th December, leaving Amsons as the sole bidder.
Now having surpassed the 75% acceptance threshold, Amsons might take steps towards delisting the cement manufacturer from the Nairobi bourse, subject to corporate and regulatory approvals.
“Should the Offeror achieve acceptances of 75% or more of the Offer Shares, the Offeror (Amsons) will evaluate the continued efficacy of Bamburi remaining listed and may then, subject to compliance and approval from the CMA, apply for Bamburi to be delisted from the NSE,” Amsons stated in its offer document.
Bamburi principal shareholders accounted for 92.2%, led by Fincem Holding Limited and Kencem Holding Limited, each owning 29.30% of the cement maker. Other major shareholders include Standard Chartered Nominees with 15.68%, and Aksaya Investment Holdings Limited with 11.75%.
The buy out was prompted by Holcim’s strategy to restructure its global footprint and streamline operations to focus on more profitable markets.
The Swiss-based firm recently sold its Nigerian unit to a Chinese firm subsequent to divestments from about 15 African units since 2015.
The Asset
Founded in 1951 by Dr. Felix Mandl, an Austrian working for Cementia Holding AG Zurich, Bamburi Cement was originally named British Standard Portland Cement Co. Ltd., and later Bamburi Portland Cement Ltd. Construction begun in 1952, with the first production and dispatch happening two years later.
It produced 140, 000 tons of cement in that first year, and soon begun exporting to Tanzania and Mauritius, and eventually, the Arabian Gulf.
The company was listed on the Nairobi Securities Exchange (NSE) Construction and Allied category in 1970.
It was partially acquired by LaFarge Group in 1989, after the Swiss multinational acquired Cementia Holding, before LaFarge became majority shareholder by also acquiring Blue Circle Industries in 2001. Bamburi itself acquired Hima Cement in Uganda in 1999, and a 20% stake in Athi River Mining in 2000.
It also owns a minority shareholding (12.50%) in East African Portland Cement (EAPC), although its ownership has always been seen from the perspective of LaFarge/Holcim’s total shareholding through various subsidiaries, which is 41.7%.
