The Nairobi Securities Exchange (NSE) has prolonged the suspension of buying and selling in Bamburi Cement Plc shares following the acquisition of 96.54% of the corporate’s bizarre shares by the offeror.
The transfer clears the best way for the acquisition of the remaining shares, permitting the share switch course of to be accomplished in accordance with authorized and regulatory necessities.
According to the Capital Markets Authority (CMA), the suspension will likely be in place till additional discover.
“The suspension shall stay in drive till such time because the Authority points additional route,” the discover learn partly.
All shareholders, buyers, and members of the general public had been suggested to pay attention to the continued suspension.
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Amsons Group Acquiring Bamburi Cement
Bamburi Cement, a number one provider in East Africa’s development sector, was on the middle of a fierce takeover battle in late 2024.
The contest concerned two fundamental contenders: Tanzania’s Amsons Group, working regionally via Amsons Industries (Ok) Ltd, and Kenya’s Savannah Clinker Limited, owned by businessman Benson Ndeta.
Savannah initially proposed a bid of Ksh25.4 billion, valuing every share at Ksh70, and later elevated the supply to Ksh27.7 billion (Ksh76.55 per share), surpassing Amsons Group’s earlier supply of Ksh23.6 billion.
However, on December 4, 2024, Ndeta withdrew Savannah’s bid after dealing with regulatory scrutiny and authorized challenges, together with an arrest and investigations into alleged monetary misconduct.
This improvement left Amsons Group as the only remaining bidder, paving the best way for its takeover try.
According to the Nairobi Securities Exchange (NSE), the 96.54% stake now acquired by Amsons surpasses the 90% threshold required to set off a obligatory acquisition of the remaining shares, as stipulated underneath Kenya’s takeover rules.
Through obligatory acquisition, the remaining minority shareholders holding about 3.46% of shares will likely be required to promote their stakes on the identical value provided to majority shareholders.
This transfer will successfully finish Bamburi Cement’s standing as a publicly traded firm after almost 60 years.
Bamburi has been grappling with rising power costs, forex volatility, and declining infrastructure funding in key markets reminiscent of Kenya and Uganda, all components which have squeezed revenue margins and hindered long-term progress prospects.
Coupled with a chronic hunch in its share value on the NSE, these pressures are extensively considered as key causes behind Holcim’s determination to exit.
Holcim closed the divestment of its enterprise in Kenya via a sale to Amsons Group of its complete 58.6% stake in Bamburi Cement Limited, leading to money proceeds of greater than USD 100 million for Holcim.
In its official assertion on the deal, Holcim acknowledged that the transaction permits us to realign our African portfolio whereas guaranteeing enterprise continuity for our staff, clients, and different stakeholders.
