- Kenya—Capital Markets Authority Clears Amsons Group’s 100% Bamburi Cement Buyout Bid
- The company launched a $185 million, equivalent to 23.5 billion Kenyan Shillings campaign takeover, for Ksh65 per share.
- The Group’s takeover is fully and financially backed by the KCB Investment Bank
The Capital Market Authority (CMA) of Kenya has approved Amsons Group’s bid to acquire up to 100% of Bamburi Cement PLC, backed by KCB Investment Bank. The Tanzanian-based Oil and Gas comglomerate company made a 23.5 billion Kenya Shillings bid of 65 kenya shillings per share, 10 shillings down from Savannah Clinkers LTD 75 kenya shilings per share.
“Amson Group is pleased to announce that, as of Monday, 25 November 2024, its offer to acquire up to 100% of the shares in Bamburi Cement Plc became unconditional. This pivotal milestone underscores the strength and credibility of Amsons’ offer, following the successful fulfilment of all key regulatory conditions.”
“With the offer period set to close on Thursday, 5 December 2024, Amson is fully prepared to finalize the transaction and usher in a new ear of growth for Bamburi Cement Plc. Backed by KCB Investment Bank, Amsons is dedicated to ensuring a smooth process, including prompt payment to shareholders who accept Amson’s offer, providing them with the ability to realise the value of their investment in Bamburi Cement Plc.”
In July 10, 2024, Amsons Group proposed the multimillion-dollar binding offer valued at US$180 million through its Kenyan subsidiary, Amsons Industries (K) LTD, which is one of the largest takeover deals in East Africa.
“Amsons Group, Tanzania’s leading manufacturer and energy plant, has issued a binding offer to acquire up to a 100% stake in Kenya’s Bamburi Cement PLC (Bamburi) (NSE: BAMB), in what is likely to be a historical record investment ticket in the East African Community (EAC) Trade relations.”
The successful takeover bid of Bamburi Cement follows the company’s regulatory approval to acquire the 65% stake in Mbeya Cement Company in Tanzania in an agreement sale with Holcim Limited in September 2023.
On October 25, 2024, the Amsons Group launched a thirty-day marketing campaign to secure the takeover support of Bamburi Cement PLC. Fully backed by the KCB Investment Bank and the US$5.3 million break fee in escrow account at ABSA Kenya, the company’s Managing Director, Mr. Edha Nahdi, confirmed their utmost respect for the shareholders, Kenya’s Capital Markets Authority, and the applicable local laws.
“The Amsons Group bid is fully financially backed by KCB Bank and secured a US$5.3 million break fee held in an escrow account at ABSA Kenya. This is a first in the Kenya capital markets scene and a demonstration of the seriousness of the Amsons Group’s takeover offer.”
“We respect all the shareholders very much, and the engagements are meant to seek their support. During these sessions, we will candidly explain our offer and share details, including the break fee we are offering and our financial guarantees, as this bid is underwritten by Kenya’s largest financial solutions provider, KCB Group. Solid financial guarantees from reputable East African entities back our bid. We greatly respect Kenya’s capital markets, and our offer adheres to all applicable laws and regulations,” MD Edha Nahdi stated.
He also appreciated the support from both Tanzanian and Kenyan presidents, Samia Suluhu and William Ruto, for augmenting the trade and investment relations between the two countries.
“Thanks to the support of our beloved President’s Mama Samia Suluhu and William Ruto, the foremost Tanzania-Kenya investment advocates, we are betting big on the Kenyan market in a shared prosperity model,” Edha Nahdi said.
The greenlight by the Kenyan authorities comes in less than two weeks following the regulatory approval from the COMESA Competition Commission on November 14, 2024, citing a lack of competition risks and its alignment with the public interest.
Founded in 2006 with a family de facto ownership, Amsons Group is Tanzania’s leading manufacturer and oil and gas company with operational roots that has penetrated across seven different African economies, including Malawi, the DRC, Zambia, Burundi, and Mozambique.
With a diversified portfolio spread in multiple industries, including cement, concrete, petroleum, gas, transport & logistics, FMCC, real estate, and manufacturing, the Amsons Group of Companies boasts an annual turnover revenue of nearly US$1 billion and a 10,000-person workforce, employed both directly and indirectly.
