The family-owned Amsons Group has made a $182.89 million bid to buy 100% of Bamburi Cement from Holcim, a Swiss firm. Bamburi is the largest cement manufacturer in Kenya, with over 30% of the market share.
The move began on Wednesday when the Amson Group launched the takeover bid through its Kenyan subsidiary, Amsons Industries (K) Ltd. Amsons Group was offering shareholders $0.51 per share and a 44.44% premium on the share closing price on Wednesday.
The proposed investment will not only cement a Tanzanian company’s place as one of East Africa’s largest takeover deals, but also promise substantial growth potential for Kenya through foreign direct investment.
Amsons Group
The Bid for Bamburi Cement came four months after the cement company exited the Ugandan market by selling its stake in Hima Cement to Sarri Group and Rwimi Holdings. However, if the acquisition is successful, it could see the cement manufacturer delist from the Nairobi Securities Exchange (NSE).
According to Amsons Managing Director Edha Nahdi, this acquisition is part of the conglomerate’s strategy to expand into East Africa’s largest economy.
We have great plans to deepen our investment in Kenya and Bamburi. It is part of our market expansion plan and will mark the formal entry into the Kenyan market. We plan to invest in other industries in the coming months.
Edha Nahdi
Initially, Holcim sold its 65% stake in Mbeya Cement Company to Amsons in November and is still negotiating the terms for the sale of Bamburi Cement. This signals Holcim’s departure from the East African market, where it holds two investments: Fincem Holdings Limited and Kencem Holdings Limited.
Amsons was founded in 2006 with investments in Zambia, Malawi, Mozambique, Burundi, and the Democratic Republic of Congo, spanning from real estate, oil and gas, wheat flour, and cement. As of today, the company has an annual turnover of over $1 billion.