Gov’t Approves Tanzanian Congloromate’s Bamburi Cement Acquisition
Amsons Group, a Tanzanian manufacturing and energy company, has received approval from Kenya’s mining ministry to unconditionally acquire Bamburi Cement.
In July, the conglomerate made a Ksh.23.9 billion offer through its Kenyan subsidiary Amsons Industries Kenya to acquire a 100% share in the listed cement company.
🇹🇿🇰🇪 | Amsons Group, a Tanzanian manufacturing and energy giant, announces a binding cash offer to acquire a 100% stake in Kenya's Bamburi Cement [@BamburiCement] from Holcim at KES 65 per share at a proposed $180M valuation:
— Mwango Capital (@MwangoCapital) July 10, 2024
📊 Amsons Group's cash offer represents a premium of… pic.twitter.com/bhrKTn3Vs9
“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 further stated that the COMESA (Common Market for Eastern and Southern Africa) Competition Commission gave its unconditional clearance for the transaction.
“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.
Amsons Group has received all necessary regulatory approvals for its offer to acquire up to 100% of Bamburi Cement Plc shares. The offer, now unconditional, closes on 5th December 2024. Shareholders can expect a smooth transition process. pic.twitter.com/1NzEBrc8yQ
— Mwango Capital (@MwangoCapital) December 3, 2024
Bamburi is primarily controlled by Swiss cement producer Holcim, which holds a 58.6 percent stake through subsidiaries Fincem Holding and Kencem Holding.
Amsons Group was created in 2006 and is run by Tanzanian business magnate Edha Nahdi.
The family-owned corporation, which has an annual turnover of more than $1 billion (approximately Ksh.129 billion), deals in bulk oil and petroleum importation, cement manufacturing, wheat flour milling, LPG, and transportation.
Following Amsons’ offer to acquire Bamburi, Kenyan business Savannah Clinker made an offer of Ksh25.4 billion in August.
Savannah’s chairman and managing director, Benson Ndeta, had stated that if the deal goes through, it will deliver an additional Ksh1.8 billion to Bamburi shareholders.
According to Capital Markets Authority (CMA) records, the five-year-old firm, which Ndeta entirely owns, offered to buy the almost 363 million issued Bamburi shares for Ksh.70 each, a Ksh.5 premium over Amsons’ offer.
Benson Ndeta's lawyer, Cecil Miller, tells Principal Magistrate, Gilbert Shikwe, that the charges brought against him are all about the bid he has placed for the acquisition of Bamburi PLC given his Kes 27.78 billion bid (Kes 76.55 per share) vs Amsons Group's Kes 23.59 billion… https://t.co/h1ponFHxx5 pic.twitter.com/OXGd2gqHcn
— Julians Amboko (@AmbokoJH) November 29, 2024
Ndeta was arrested last week in connection with an alleged fraudulent Ksh.700 million transaction to expand Savannah Clinker.
He was accused on Friday in Nairobi High Court and denied all eight accusations, including conspiracy to commit a felony, gaining execution of a security by fake presence, and uttering fraudulent documents.
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Despite a Friday High Court judgment suspending Ndeta’s prosecution and incarceration, the businessman spent the weekend in custody before being freed unconditionally on Monday.
The issue, which some MPs believe is intended to derail his Bamburi Cement offer, will be discussed on January 21.
The approval of Amson’s offer for Bamburi comes only days after Holcim announced on Sunday that it will depart its Nigerian business by selling over 84% of its stake in Lafarge Africa for $1 billion (Ksh.129 billion).
According to Reuters, the withdrawal is part of the cement maker’s goal to focus on high-growth markets such as North America.
Gov’t Approves Tanzanian Congloromate’s Bamburi Cement Acquisition
