Swiss construction materials manufacturer Holcim, the largest shareholder in Kenya’s top cement maker, Bamburi, has approved a $182.8 million buyout proposal from Tanzanian energy conglomerate, Amsons Group. This move will involve the sale of Holcim’s 58.6% stake in Bamburi to Amsons Group.
Approval Process and Offer Details
Following Holcim’s sanction, the transaction necessitates consent from minority shareholders as well as regulatory bodies such as the Competition Authority of Kenya (CAK) and the Capital Markets Authority (CMA). Amsons Group has put forth a proposal of $0.52 (KES 65) per share, offering a 44.4% premium on Bamburi’s closing price as of July 10, the date of the announcement.
Financial Confirmation and Potential Delisting
KCB Investment Bank Ltd, acting as the transaction advisor and sponsoring stockbroker for Amsons, has confirmed the financial capability of Amsons to cover the consideration payable for all Bamburi shares, assuming full acceptance of the offer. This transaction may result in Bamburi’s delisting from the Nairobi Securities Exchange (NSE). However, Amsons must secure the approval of at least 75% of the offered shares before seeking CMA’s permission to exit the exchange.
Delisting Process and Future Expansion
In the event that Amsons succeeds in acquiring 90% of the offered shares, the company plans to extend an offer to the remaining shareholders in line with Kenya’s takeover regulations. Amsons’ acquisition signifies its official entry into the Kenyan market, with intentions to diversify into additional sectors.
Expansion Plans and Corporate Profile
Amsons Group, a family-owned conglomerate established in 2006, operates across various sectors including oil and gas, real estate, wheat flour, and cement in Malawi, Zambia, Mozambique, Burundi, and the Democratic Republic of Congo (DRC). With an annual turnover exceeding $1 billion, the company has announced its strategic expansion into the Kenyan market and further diversification in the future.