In a significant move within the East African business landscape, Tanzania-based Amsons Group has made a $180 million bid to acquire the entire stake of Bamburi Cement. This deal, one of the largest takeover offers in the region, could potentially lead to Bamburi Cement's delisting from the Nairobi Securities Exchange (NSE).

Details of the Acquisition Offer

Amsons Group, a family-run conglomerate with diverse interests across energy, construction, food, and transport sectors, has signed a binding offer with Bamburi Cement. The proposed acquisition aims to deepen Amsons Group's presence in the East African cement market. Edha Nahdi, Managing Director of Amsons Group, emphasized the strategic importance of this deal, stating, “We have great plans to deepen our investment in Kenya and in Bamburi.”

Strategic Expansion into the Kenyan Market

The acquisition offer represents a significant part of Amsons Group’s corporate market expansion strategy. “Our offer to acquire shares in Bamburi is part of our corporate market expansion plan and will mark the formal entry of Amsons Group into the Kenyan market, where we plan to make investments in other industries in the coming months,” said Nahdi.

Financial Details and Shareholder Impact

The public takeover offer, issued through Amsons Industries (K) Ltd, Amsons Group’s Kenyan subsidiary, proposes a payment of Ksh65 ($0.51) per share to Bamburi shareholders. This offer reflects a 44.4% premium over Bamburi’s closing price of Ksh45 ($0.35) per share at the NSE, representing a Ksh20 ($0.16) gain per share.

Current Ownership and Stake Sale Agreement

Bamburi Cement is majority-owned by Holcim, through its investment vehicles Fincem Holding Limited and Kencem Holding Limited, holding a combined stake of 58.3%. Martin Kriegner, Regional Head of Asia, Middle East & Africa at Holcim, commented on the sale agreement, stating, “This agreement to sell our stake in Bamburi Cement advances Holcim’s strategy of extending our leadership in our core markets as the global leader in innovative and sustainable building solutions.”

Amsons Group's Business Background

Founded in 2006, Amsons Group has grown to achieve an annual turnover exceeding $1 billion. Historically focused on bulk oil and petroleum products under the Camel Oil Tanzania brand, the group has expanded its portfolio to include substantial operations in the manufacturing sector. This includes a 6,000 metric tonnes per day cement manufacturing capability, bolstered by the recent acquisition of the Mbeya Cement facility.