Companies
Bamburi Cement completes Sh12bn sale of Uganda subsidiary
Thursday March 07 2024
A section of Bamburi cement factory in Mombasa. FILE PHOTO | NMG
Bamburi Cement has completed the sale of its 70 percent stake in its Ugandan subsidiary Hima Cement for an estimated $84 million (Sh12 billion) giving it a cash flow boost.
The Nairobi Securities Exchange-listed firm said Thursday morning the sale of the stake to a consortium of Sarrai Group and Rwimi Holding was completed on March 5 after it received all the regulatory and shareholder approvals. This means the Uganda unit will no longer be Bamburi’s subsidiary.
Read: How Bamburi got top price in Uganda
“Bamburi is pleased to announce that all the conditions precedent to the transaction have been satisfied and that the transaction successfully completed,” said the cement maker in a statement.
“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.”
Bamburi in mid-November 2023 announced that it intended to sell 1,335,600 ordinary shares in Hima Cement Limited —representing 70 percent of the total issued shares. The shares were owned by Bamburi through its parent company, Himcem Holdings Limited.
The cement manufacturer’s shareholders endorsed the transaction on December 14, 2023 through a virtual meeting, followed by other regulatory clearances.
“The board of Bamburi takes this opportunity to extend its gratitude to all of Bamburi’s shareholders as well as the regulators, including the Capital Markets Authority, for their support to bring the transaction to completion,” said the firm in a statement.
Read: Bamburi signals dividend from Sh12bn Uganda deal
Hima Cement’s minority shareholder Cementia Holding AG also joined its sister company Bamburi in selling its 30 percent stake for $36 million (Sh5.1 billion) to a consortium of Sarrai Group and Rwimi Holdings, which will now fully own the cement manufacturer.
The total value of the deal was amounting to $120 million (Sh17.05 billion). The deal value was, however, subject to adjustments that were to be made at or after the completion of the transaction.
The deal is part of a strategy by Bamburi’s parent firm Holcim to divest from fragmented markets and concentrate in countries where it is among the biggest players.
The multinational is also selling its 65 percent stake in its Tanzanian subsidiary Mbeya Cement Company to Amsons Group.
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