Afrigather Tanzania’s Amsons Group, a family-owned conglomerate with pursuits throughout varied sectors, has made a $182.89 million (KES23.59 billion) supply to purchase a 100% stake in Kenya’s Bamburi Cement from Holcim, a Swiss multinational.
The acquisition may see the native cement producer delist from the Nairobi Securities Alternate (NSE).
On Wednesday, the Tanzanian agency launched a take-over bid via its Kenyan subsidiary Amsons Industries (Ok) Ltd, providing shareholders $0.51 (KES65) per share. Amsons’ bid will supply the cement producer’s shareholders a 44.44% premium on the share closing value on Wednesday.
“The proposed funding won’t solely cement a Tanzanian firm’s place as one in every of East Africa’s largest takeover offers but additionally guarantees substantial progress potential for Kenya via overseas direct funding,” Amsons stated in an announcement.
Bamburi is the biggest cement maker in Kenya, controlling about 30% market share. Edha Nahdi, Amsons managing director, stated the acquisition is a part of the corporate’s plans to increase into East Africa’s largest economic system.
“We have now nice plans to deepen our funding in Kenya and Bamburi. It’s a part of our market growth plan and can mark the formal entry into the Kenyan market. We plan to spend money on different industries within the coming months,” stated Edha Nahdi, Amsons managing director.
Based in 2006, Tanzania’s Amsons has pursuits in cement, actual property, oil and fuel, and wheat flour throughout Malawi, Zambia, Mozambique, Burundi, and the Democratic Republic of Congo. The corporate has an annual turnover of over $1 billion.
In November 2023, Holcim bought its 65% stake in Mbeya Cement Firm, a Tanzania subsidiary, to Amsons. The most recent bid may sign the Swiss agency’s divesture from the East African market which it holds two funding arms, Kencem Holding Restricted and Fincem Holding Restricted.
The acquisition bid comes 4 months after Bamburi Cement exited the Ugandan market by promoting its stake in Hima Cement to Uganda’s Sarrai Group and Rwimi Holdings.
