A Tanzania-based group with interests in energy, construction, food and transport has made a $180 million (Sh23.15 billion) offer to acquire the entire stake in Bamburi Cement in what would be one of the largest takeover deals in East Africa.
Amsons Group, a family-owned business with operations in Tanzania, Zambia, Malawi, Mozambique, the Democratic Republic of Congo and Burundi, announced on Wednesday that it has signed a binding offer with Bamburi Cement. The deal could see Bamburi, one of Kenya’s leading companies, delisted from the Nairobi Securities Exchange.
The proposed transaction will strengthen the group’s position in the cement sector in East Africa as part of the ideals of regional economic development and market integration, said Ida Nahdi, CEO of Amsons Group.
Commenting on the imminent deal, Mr. Al Nahdi said: “We have big plans to deepen our investments in Kenya and in Bamburi.”
“Our offer to acquire shares in Bamburi is part of our plan to expand our institutional market and will mark the formal entry of the Amsons Group into the Kenyan market, as we plan to invest in other industries in the coming months.”
The group has issued a notice of intent to launch a public takeover offer through its Kenyan subsidiary and investment vehicle, Amsons Industries (K) Limited, in a deal that will see it pay Sh65 per share to Bamburi shareholders.
At Sh65 per share, Amsons’ cash offer represents a premium of Sh20 per share or a gain of 44.4 per cent, given that Bamburi’s stock closed trading on the NSE on Wednesday at Sh45 per share.
Holcim owns the majority of Bamburi through two investment companies – Fincim Holdings Ltd and Kincim Holdings Ltd – with a total stake of 58.3 per cent.
“This agreement to sell our stake in Bamburi Cement reinforces Holcim’s strategy to expand our leadership in our core markets as the world’s leading provider of innovative and sustainable building solutions,” said Martin Kriegner, Holcim’s Regional President for Asia, Middle East and Africa.
Amsons Group was established in 2006 in Tanzania and now has an annual turnover of over $1 billion (Sh128.5 billion). Its main business operations have historically involved the import of petroleum and petroleum products in bulk under the Camel Oil brand in Tanzania.
Over time, the group has successfully expanded its investment portfolio in the manufacturing sector with a capacity to manufacture 6,000 metric tons of cement per day, including through the recently acquired Mbeya Cement facility.