Bamburi Cement Limited has issued a warning to investors following the completed sale of 70 percent stake in its Ugandan subsidiary Hima Cement Limited.
The company in a March 6, 2024, statement warned both shareholders and investors to exercise caution when trading in its shares.
“This development constitutes material information and shareholders and investors of Bamburi are urged to exercise caution when trading in Bamburi’s shares due to this significant change,” read part of the statement.
The represented 70% stake in Ugandan Hima Cement which was owned by Bamburi Cement’s subsidiary Himcem Holdings Limited, amounted to a total of Ksh1,335,600 ordinary shares.
According to the company, the sale of involved a progressive process which was first initiated with an announcement on 14 November 2023.
Following the announcement, the publication of the results of the virtual general meeting of the shareholders of Bamburi Cement was held on 14 December 2023.
Also Read: Bamburi to Stop Production of Ordinary Portland Cement; Here’s Why
The shareholders approved the transaction, with the successful completion coming on March 5 after all the conditions precedent to the transaction were satisfied.
“Following the completion of the Transaction, Bamburi has fully divested its proprietary interest in Hima Cement Limited and Hima Cement Limited will no longer be reported as a subsidiary of Bamburi,” the company said in a statement.
Bamburi cement aims for cash flow boost
The estimated $84 million (Ksh11.8 billion) transaction is set to give the company a cash flow boost.
Also Read: Bamburi Agrees to Sell Stake in Uganda Cement to Focus on Kenyan Business
The company which is a subsidiary of Lafarge Group is engaged in the manufacture and sale of cement and cement-related products.
It also owns and manages a nature and environmental park developed from rehabilitated quarries.
Other subsidiaries owned by the company include Bamburi Special Products Ltd, Lafarge Eco Systems Ltd and Diani Estates Ltd.
Additionally, the company owns HimCem Holdings Limited, Kenya Cement Marketing Ltd, Portland Mines Limited and Seruji Management Limited subsidiaries.
Bamburi Cement Limited is listed on the Nairobi Securities Exchange (NSE) and traded under the ticker symbol “BAMB”.
As of March 8, 2024, the company was the 15th most valuable stock on the NSE with a market capitalization of Ksh15.4 billion.
This is about 1.04% of the NSE equity market, with the company holding a share price of Ksh42.50 as of Thursday, March 7, 2024.
