Gov’t approves Bamburi Cement buyout by Tanzanian company, shuns local investor Savannah Clinker
Tanzanian manufacturing and energy giant Amsons Group has gotten approval from Kenya’s mining ministry to unconditionally acquire Bamburi Cement
Tanzanian manufacturing and energy giant Amsons Group has gotten approval from Kenya’s mining ministry to unconditionally acquire Bamburi Cement.
The Tanzanian conglomerate, through its Kenyan subsidiary Amsons Industries Kenya, made a Ksh.23.9 billion offer in July to buy a 100 percent stake in the listed cement manufacturer.
“Securing all the regulatory approvals is a strong vote of confidence in our unwavering commitment to this transaction,” Amsons Group CEO Edha Nahdi said in a Wednesday media release, a day before the offer period closes on December 5.
“As we approach the close of the offer period, we are confident in our ability to finalise the acquisition smoothly while delivering value to Bamburi Cement shareholders. This milestone reinforces the strength and credibility of our offer.”
Amsons said it also received unconditional approval for the acquisition from the COMESA (Common Market for Eastern and Southern Africa) Competition Commission.
“Supported by KCB Investment Bank, Amsons is committed to ensuring a seamless closing process including the prompt payment to shareholders who accept Amsons’ offer…,” added Nahdi.
Bamburi is largely owned by Swiss cement manufacturer Holcim, which has a 58.6 percent shareholding through subsidiaries Fincem Holding and Kencem Holding.
Amsons Group was founded in 2006 and is led by Tanzanian tycoon Edha Nahdi.
With over $1 billion (about Ksh.129 billion) in annual turnover, the family-owned conglomerate deals in bulk oil and petroleum importation, cement manufacturing, wheat flour milling, LPG and transportation.
Savannah Clinker
On the heels of Amsons’ offer to acquire Bamburi, Kenyan company Savannah Clinker in August placed Ksh25.4 billion for the company.
Savannah would offer an additional Ksh1.8 billion to Bamburi shareholders if the deal materializes, its chairman and managing director, Benson Ndeta, said then.
Per Capital Markets Authority (CMA) filings, the five-year-old firm, which Ndeta fully owns, offered to take up the nearly 363 million issued Bamburi shares at Ksh.70 each, Ksh.5 more than what Amsons offered.
Ole Sapit breaks silence after ACK Bungoma Bishop received Ksh5 million donation from Ruto
KRA announces paid internship opportunities for graduates; How to apply
We’ll come for you – CS Joho warns Kenyans opposing Raila AUC bid on social media
World Athletics bans Kenyan world record holder
Women earning above Ksh.100,000 increase by 92 percent – KNBS
I’ll run for president in the 2027 election because I am bitter; Wajackoyah
Ndeta was last week arrested in connection to a purported fraudulent Ksh.700 million deal to expand Savannah Clinker.
He was charged on Friday at a Nairobi High Court, where denied all eight counts, among them conspiracy to commit a felony, obtaining execution of a security by false presence and uttering false documents.
Despite a Friday High Court order stopping Ndeta’s prosecution and detention, the businessman spent the weekend in custody and was later released unconditionally on Monday.
The matter, which some politicians claim is meant to sabotage his Bamburi Cement bid, will be mentioned on January 21.
The approval of Amson’s offer for Bamburi comes just days after Holcim on Sunday announced it will exit its Nigerian business through the sale of its almost 84% stake in Lafarge Africa in a $1 billion (Ksh.129 billion) deal.
The exit is part of the cement maker’s strategy to focus on high-growth regions, including North America, the Reuters news agency reports.
Also read,
Government recalls all police officers on leave
Ruto rebukes Kenyans celebrating the cancellation of JKIA-Adani deal
Prof. Olive Mugenda resigns as KU Hospital board chair
Reject government misinformation and lies; NCCK tells Kenyans
EACC invites Kenyans for integrity training at a cost of Ksh.53,000
Follow us
