Bamburi Cement has announced to its shareholders that its subsidiary, Hima Cement Limited, is getting into a proposed transaction with Sarrai Group Limited and Rwimi Holdings Limited.
In this transaction, the two buying companies plan to own 100 percent of the shares in Hima Cement from Holcim holdings.
Notably,the transaction will boost cashflows to Bamburi Cement.
Consequently, Hima Cement Limited is a Uganda-based subsidiary of Bamburi Cement PLC.
“The Board of Bamburi Cement PLC has approved the sale of Bamburi Cement PLC’s stake in Hima Cement Limited. Completion of the transaction is subject to obtaining the relevant regulatory clearances and the approval of the shareholders of Bamburi Cement PLC,” stated Bamburi Cement PLC.
Being a subsidiary of Bamburi Cement, shareholders of the Kenyan cement grinder were advised through the cautionary announcement to take precaution whilst dealing with the shares of the listed firm.
Notably, the shares to be traded in the proposed transaction are valued at Kshs 18.2 billion ($120 million).
Additionally, Holcim announced that it was selling its 65 percent stake in its Tanzanian subsidiary, Mbeya Cement.
“Holcim has also agreed to sell its 65% participation in Mbeya Cement Company Ltd in Tanzania to Amsons Group for an undisclosed sum. Completion of both transactions is subject to obtaining the respective regulatory clearances,” the statement read in part.
Bamburi Cautionary Statement
However, the cautionary statement clarified that the transaction was not a sure bet.
On this, the statement noted that the proposed transaction is subject to satisfaction or waiver of certain conditions and subject to receipt of the approval of shareholders of Bamburi.
However, upon completion of the proposed transaction, Sarrai Group Limited and Rwimi Holdings Limited will, together, legally and beneficially own 100% of the issued share capital of Hima Cement Limited and all its subsidiaries, including Hima Cement Rwanda Limited.
Further, after this transaction, Hima Cement will cease to be a member of the Bamburi group and will become a member of the Sarrai group.
“Holcim and its affiliates are pleased to have found a strategic and trusted partner for the Ugandan business in Sarrai, which is well positioned to continue investing in its long-term growth.
Holcim and Bamburi Cement PLC see it as a positive opportunity for all parties and believe that this deal will ensure a prosperous and profitable future for Hima Cement Limited.”
Assurance to Shareholders
Additionally, the statement promised that the cement grinder would reveal more details on the transaction in a circular to all shareholders. The statement did not clarify the date when the circular would be released.
“Further details of the Proposed Transaction will be published through the requisite announcements and a shareholders’ circular to be issued to the shareholders of Bamburi pursuant to the provisions of the Capital Markets (Take-overs and Mergers) Regulations,” the warning statement read in part.
Still, until a further announcement regarding this matter is made, the shareholders and other investors of Bamburi were advised to exercise caution when dealing in Bamburi’s ordinary shares listed on the Nairobi Securities Exchange.
“This transaction does not impact operations for Bamburi Cement PLC in Kenya. Divesting its operations in the Ugandan market will lead to Bamburi Cement PLC focusing its efforts on the Kenyan market.”
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Notably, Bamburi Cement is the 17th most traded stock on the Nairobi Securities Exchange for the months of August to November.
Registered in the NSE under the ticker symbol, BAMB, the cement company has traded a total volume of 4.1 million shares valued at Ksh105 million over the same period.
About the companies
Bamburi Cement PLC is a Lafarge company, which is a member of Holcim Group, and is the leading cement manufacturing and marketing company in the Eastern Africa region. It has been operational for 68 years.
Its subsidiaries include Hima Cement Ltd (Uganda), Bamburi Special Products Ltd, Lafarge Eco Systems Ltd and Diani Estates Ltd.
On the other hand, Holcim builds progress for people and the planet.
It is the company behind some of the world’s most trusted brands in the building sector including ACC, Aggregate Industries, Ambuja Cement, Disensa, Geocycle, Holcim, Lafarge and Malarkey Roofing Products.
