Trading of Bamburi Cement shares at the Nairobi Securities Exchange (NSE) has been suspended, 55 years after the cement manufacturer was listed on the bourse.
- •This follows the successful completion of a takeover offer by Amsons Industries (K) Ltd on 5th December 2024, with 96.54% of Bamburi Cement’s shares acquired.
- •According to the notice, Amsons will initiate a squeeze out process to acquire the remaining 3.46% from shareholders who did not accept the initial offer.
- •Trading is expected to remain halted until the completion of the squeeze-out process on May 9, 2025, after which the company’s shares may undergo further regulatory or corporate adjustments.
“The trading of Bamburi shares on the Nairobi Securities Exchange shall be suspended with effect from the close of trading on 27 February 2025 until 9 May 2025,” Bamburi said in the notice.
The company was listed on the Nairobi Securities Exchange (NSE) Construction and Allied category in 1970 trading to an all-time high of KSh 250 in 2007. As of 26th February 2024, the cement manufacturer closed the trading day at KSh 56.50 per share.
The Looming Delisting
Amsons stated in its offer document that if it achieves 75% or more acceptances of the Offer Shares, it will assess whether Bamburi should remain listed on the NSE and may apply for delisting, subject to CMA approval.
In December, Amsons offer was subscribed by over 90%, granting the company the option to compulsorily buyout any remaining shareholders for a consideration equal to the prevailing market price.
With the 75% acceptance threshold surpassed, Amsons might consider 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 in 2024.
