Amsons Group, a Tanzanian energy company, is set to acquire a 58.6% stake in Kenya's largest cement maker, Bamburi Cement, from Swiss construction giant Holcim. The $182.8 million deal is one of the biggest takeovers in East Africa.
Holcim, which owns the majority stake in Bamburi Cement, has agreed to the buyout offer from Amsons Group. The deal still needs approval from minority shareholders and regulators, including the Competition Authority of Kenya (CAK) and the Capital Markets Authority (CMA).
Amsons Group offered Bamburi shareholders $0.52 (KES65) per share, a 44.4% premium on the company’s closing price on July 10, when the deal was announced. Since then, Bamburi’s share price has risen to KES61 ($0.47). Bamburi Cement is Kenya’s largest cement producer, with around 30% of the market share.
Bamburi Cement confirmed that Amsons Group has the financial resources to complete the buyout. “KCB Investment Bank Ltd, acting as the transaction advisor and sponsoring stockbroker for Amsons, has verified that Amsons has enough financial resources to pay for all shares in Bamburi upon full acceptance of the offer,” Bamburi said.
The acquisition could lead to Bamburi being delisted from the Nairobi Securities Exchange (NSE). Amsons needs to get at least 75% of the offered shares before seeking CMA approval to delist from the NSE. If Amsons acquires 90% of the offer shares, they will be required to buy out the remaining shareholders at either the current market price or the price offered to other shareholders, following Kenya’s takeover rules.
This acquisition marks Amsons Group's entry into the Kenyan market, with plans to expand into other sectors. Founded in 2006, the family-owned company has interests in oil and gas, real estate, wheat flour, and cement in Malawi, Zambia, Mozambique, Burundi, and the Democratic Republic of Congo (DRC). The company has an annual turnover of over $1 billion.
Play audio
No comments