Grace Ashiru
Holcim, a Swiss construction materials manufacturer and the largest shareholder in Kenya’s leading cement maker, Bamburi, has greenlit a $182.8 million buyout offer from Amsons Group. Holcim will sell its 58.6% stake in Bamburi to the Tanzanian energy conglomerate, Amsons Group.
Following Holcim’s approval, the transaction will also require the consent of minority shareholders and regulatory bodies, including the Competition Authority of Kenya (CAK) and the Capital Markets Authority (CMA).
Amsons say has proposed $0.52 (KES65) per share, representing a 44.4% premium on Bamburi’s closing price as of July 10, the day the deal was announced. Since then, Bamburi’s share price has surged to KES61 ($0.47). Bamburi holds the position of the largest cement manufacturer in Kenya, commanding approximately 30% of the market share.
KCB Investment Bank Ltd, acting as the transaction advisor and sponsoring stockbroker for Amsons, has confirmed that Amsons possesses sufficient financial resources to cover the consideration payable for all shares in Bamburi, assuming a full acceptance of the offer,” Bamburi stated.
This transaction may lead to Bamburi delisting from the Nairobi Securities Exchange (NSE). However, for Amsons to proceed with delisting, they must secure the backing of at least 75% of the offered shares before seeking approval from the CMA to exit the Nairobi bourse.
If Amsons successfully acquires 90% of the offered shares, the company will extend an offer to the remaining shareholders, providing them with a consideration equal to the current market price of the voting shares or the price offered to other shareholders, in accordance with Kenya’s takeover regulations.
The Tanzanian firm’s acquisition signifies its formal entry into the Kenyan market, with future plans to diversify into additional sectors, as announced on July 10.
This family-owned conglomerate, established in 2006, has ventures spanning oil and gas, real estate, wheat flour, and cement across Malawi, Zambia, Mozambique, Burundi, and the Democratic Republic of Congo (DRC). It boasts an annual turnover exceeding $1 billion.
