Tanzania’s Amsons Group has kicked off the KSh 23.6 billion Bamburi Cement buyout deal, acquiring the first batch of the listed cement manufacturer’s shares at KSh 8.91 billion in a block trade.
- Amsons bought 137.1 million shares in Bamburi Cement, priced at KSh 65 per unit, bringing the total cost to KSh 8.91 billion in the Wednesday trade.
- Bamburi posted a record high in volumes traded – about 38% of the firm’s total issued shares of 362.9 million, with the trades accounting for 95% of the day’s total turnover.
- The block trade boosted the total equity turnover at the Nairobi Securities Exchange (NSE), which stood at higher levels of KSh 9.4 billion in a single day – a 6052% uptick from KSh 152.5 million recorded in the previous session.
“Today’s market turnover surged significantly to KSh 9 billion, up from KSh 152 million in the previous session, driven by a block trade in Bamburi Cement,” NSE said in its daily report on Wednesday.
The total volume of shares traded in the day surged 1864% to 174 million from 8.8 million traded previously, with Bamburi accounting for 78% of the day’s session.
“The total volume of traded shares jumped to 174 million, compared to 8.8 million shares in the prior session, with the block transaction contributing substantially to the day’s activity,” NSE added.
A block trade is a large securities transaction privately negotiated and arranged away from public markets to minimize its impact on the security price.
Bamburi’s principal shareholders are 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 11.12%.
The Acquisition Tussle
On December 4th, just a day before the final acceptance date, Savannah Clinker withdrew its competing offer for the listed cement manufacturer. In a statement, the company lay blame on the Capital Markets Authority for refusing to extend the offer period by 60 days to enable it “respond to any queries” after the arrest and prosecution of its chairman. Read More.
In October, Savannah Clinker had hiked its offer for the cement manufacturer from KSh 70 per share to KSh 76.55 per share, while Amsons’ July bid remained unchanged at KSh 65.
The tussle between the Amsons Group and Savannah Clinker for Bamburi saw the company’s share price surge to KSh 77.52 at the start of September, later closing at KSh 52 on the last trading day of 5th December 5th.
If Amsons acquires 90% or more of Bamburi’s shares, the Tanzanian conglomerate will buy out the remaining shareholders in a consideration that is equal to the prevailing market price and run the squeeze out process.
Amsons said it will consider the continued efficacy of Bamburi remaining listed and may then apply for Bamburi’s delisting from the NSE if the acceptances reach 75% upon evaluation.
