Amsons Group, Tanzania’s leading manufacturing and energy giant, 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 deal marks a significant milestone as Amsons seeks to invest in one of Kenya’s iconic blue-chip companies listed on the Nairobi Securities Exchange (NSE). The proposed investment will not only cement a Tanzanian company’s place as one of East Africa’s largest takeover deals but also promises substantial growth potential for Kenya through the potential foreign direct investment from the proposed US $180 million deal.
Amsons Group, through its Kenyan subsidiary and investment vehicle, Amsons Industries (K) Ltd, has issued a notice of intention to launch a public take-over offer that will involve the acquisition of up to 100% of the shares in Bamburi for Sh65 per share.
Amsons Group Managing Director, Mr Edha Nahdi, said the proposed cross-border acquisition will deepen the group’s position in the cement sector in East Africa as part of the regional economic development and market integration ideals. “We have great plans to deepen our investment in Kenya and in Bamburi.” said Mr Nahdi, Amsons Group Managing Director.
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The cash offer by Amsons Group represents a premium above the Bamburi Cement share price as of the closing of trade at the NSE on July 09, 2024. Amsons Group is a family-owned business founded in 2006 in Tanzania that now has more than US$1 billion in annual turnover. Its main business operations historically involved bulk oil and petroleum products importation under the Camel Oil Tanzania retail brand.
The group has steadily diversified and grown its portfolio in the manufacturing sector with a 6,000MT/day cement manufacturing capability, including through the recently acquired Mbeya Cement facility. In addition, the group has a 500MT/day Wheat Flour Milling Plant, a state-of-the-art premix Concrete plant, Inland Container Depots (ICDs), Fuel and lubricants, Liquefied Petroleum Gas (LPG), and Transportation fleet across Zambia, Malawi, Mozambique, Democratic Republic of Congo, Burundi and Tanzania.
In the Fuel Sector, Amsons Group has Fuel Depots in several Countries, including Tanzania, Mozambique, Zambia, and DRC, with over 150 retail stations in those countries.
Last November, Holcim agreed to sell its 65% participation in Mbeya Cement Company Ltd in Tanzania to Amsons Group and has recently completed the acquisition following regulatory approvals.
Holcim’s Regional Head of Asia, Middle East & Africa, Mr Martin Kriegner, said: “This agreement to sell our stake in Bamburi Cement advances Holcim’s strategy of extending our leadership in our core markets as the global leader in innovative and sustainable building solutions. With Amsons Group, we are pleased to have found a strategic and trusted partner best positioned to develop Bamburi Cement PLC’s business in the long term.”
Amsons Industries (T) Ltd is a cement products manufacturer under the brand names Camel Cement and Tembo Cement, two household brands in the Tanzanian construction market. “Our offer to acquire shares in Bamburi is part of our corporate market expansion plan and will mark the formal entry of Amsons Group into the Kenyan market, where we plan to make investments in other industries in the coming months,” Mr Nahdi said.
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