NSE Extends Bamburi Shares Suspension Ahead of Takeover By Tanzanian Tycoon

The Nairobi Securities Exchange (NSE) has extended the suspension of trading in Bamburi Cement Plc shares following the acquisition of 96.54% of the company’s ordinary shares by the offeror.

The move clears the way for the acquisition of the remaining shares, allowing the share transfer process to be completed in accordance with legal and regulatory requirements.

According to the Capital Markets Authority (CMA), the suspension will be in place until further notice. 

“The suspension shall remain in force until such time as the Authority issues further direction,” the notice read in part.

All shareholders, investors, and members of the public were advised to take note of the continued suspension.

Amsons Group Acquiring Bamburi Cement

Bamburi Cement, a leading supplier in East Africa’s construction sector, was at the center of a fierce takeover battle in late 2024.

Also Read: Govt to Conduct Survey on How Kenyans Receive and Send Money Abroad

The contest involved two main contenders: Tanzania’s Amsons Group, operating locally through Amsons Industries (K) Ltd, and Kenya’s Savannah Clinker Limited, owned by businessman Benson Ndeta.

Savannah initially proposed a bid of Ksh25.4 billion, valuing each share at Ksh70, and later increased the offer to Ksh27.7 billion (Ksh76.55 per share), surpassing Amsons Group’s earlier offer of Ksh23.6 billion.

However, on December 4, 2024, Ndeta withdrew Savannah’s bid after facing regulatory scrutiny and legal challenges, including an arrest and investigations into alleged financial misconduct.

This development left Amsons Group as the sole remaining bidder, paving the way for its takeover attempt.

Bamburi Cement Shares

According to the Nairobi Securities Exchange (NSE), the 96.54% stake now acquired by Amsons surpasses the 90% threshold required to trigger a compulsory acquisition of the remaining shares, as stipulated under Kenya’s takeover regulations.

Through compulsory acquisition, the remaining minority shareholders holding about 3.46% of shares will be required to sell their stakes at the same price offered to majority shareholders.

Also Read: Win for Small Investors As NSE Announces Changes in Trading Rules

This move will effectively end Bamburi Cement’s status as a publicly traded company after nearly 60 years.

Bamburi has been grappling with rising energy prices, currency volatility, and declining infrastructure investment in key markets such as Kenya and Uganda, all factors that have squeezed profit margins and hindered long-term growth prospects.

Coupled with a prolonged slump in its share price on the NSE, these pressures are widely viewed as key reasons behind Holcim’s decision to exit.

Holcim closed the divestment of its business in Kenya through a sale to Amsons Group of its entire 58.6% stake in Bamburi Cement Limited, resulting in cash proceeds of more than USD 100 million for Holcim.

In its official statement on the deal, Holcim stated that the transaction allows us to realign our African portfolio while ensuring business continuity for our employees, customers, and other stakeholders.

Follow our WhatsApp Channel and X Account for real-time news updates.