Tanzanian Company Announces Ksh 23billion Bid to Acquire Bamburi Cement

Tanzania’s multi-business conglomerate, Amsons Group, has launched a bid to acquire Kenya’s Bamburi Cement PLC from Holcim.

Amsons Group, in a statement on Wednesday July 10, 2024, announced that it has issued a binding offer to acquire up to a 100% stake in Bamburi Cement, in what is likely to be a historical record investment ticket in the East African Community (EAC) Trade relations.

The conglomerate said that it has issued a notice of intention to launch the public take-over offer through its Kenyan subsidiary and investment vehicle, Amsons Industries (K) Ltd.

According to the Tanzanian manufacturing and energy giant, a successful bid will involve the acquisition of up to 100% of the shares for Ksh65 per share.

This translates to $180 million (Ksh23 billion) for the Nairobi Securities Exchange (NSE) listed manufacturer.

“The deal marks a significant milestone as Amsons seeks to invest in one of Kenya’s iconic blue-chip companies listed on the Nairobi Securities Exchange (NSE),” read part of the statement.

“The proposed investment will not only cement a Tanzanian company’s place as one of East Africa’s largest takeover deals but also promises substantial growth potential for Kenya through the potential foreign direct investment from the proposed US $180 million deal.”

Amsons Group Managing Director Edha Nahdi said the proposed cross-border acquisition will deepen the group’s position in the cement sector in East Africa as part of the regional economic development and market integration ideals.

“We have great plans to deepen our investment in Kenya and in Bamburi.” said Nahdi.

The offer from the Tanzanian firm represents a 44.44% premium from the share’s closing price during Wednesday’s session.

Also Read: Bamburi Cement Warns Investors After Ksh11.8 billion Uganda Deal

Amsons Group Plans to Acquire Bamburi Cement

According to the company, the cash offer represents a premium above the Bamburi Cement share price as of the closing of trade at the NSE on July 09, 2024.

Amsons Group is a family-owned business founded in 2006 in Tanzania that now has more than US$1 billion in annual turnover. Its main business operations historically involved bulk oil and petroleum products importation under the Camel Oil Tanzania retail brand.

The group has steadily diversified and grown its portfolio in the manufacturing sector with a 6,000MT/day cement manufacturing capability, including through the recently acquired Mbeya Cement facility.

In addition, the group has a Wheat Flour Milling Plant, a state- of-the-art premix Concrete plant, Inland Container Depots (ICDs), Fuel and lubricants, Liquefied Petroleum Gas (LPG), and Transportation fleet across Zambia, Malawi, Mozambique, Democratic Republic of Congo, Burundi and Tanzania.

Amsons Group in the Fuel Sector has Fuel Depots in several Countries, including Tanzania, Mozambique, Zambia, and DRC, with over 150 retail stations in those countries.

The bid comes after Holcim in November 2023 agreed to sell its 65% participation in Mbeya Cement Company Ltd in Tanzania to Amsons Group, with the group recently completing the acquisition following regulatory approvals.

Also Read: KCB Warns Shareholders & Investors in 4 Countries After National Bank Sale

Majority Stake at Hima Cement Sold

Also, this comes just four months after Bamburi Cement PLC completed its divestiture from its Uganda subsidiary, Hima Cement Ltd.

Bamburi Cement Limited in March 2024 completed sale of 70 percent stake in Hima Cement Limited, further warning both its investors and shareholders 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.