Amsons of Tanzania earns $180 million. Kenya’s bid to acquire Bamburi

A Tanzanian conglomerate with a wide range of holdings in food, construction, energy, and transportation has put in a $180 million bid to buy out Bamburi Cement entirely, making it one of the biggest takeover offers in East Africa.

The family-owned company Amsons Group, which has activities in Tanzania, Zambia, Malawi, Mozambique, the Democratic Republic of the Congo, and Burundi, said on Wednesday that it has inked a legally binding contract with Bamburi Cement. A famous blue-chip company in Kenya, Bamburi, may be delisted from the Nairobi Securities Exchange as a result of the purchase.

The planned agreement will strengthen the Amsons Group’s position in the cement industry in East Africa, according to Managing Director Edha Nahdi. This is in line with the goals of market integration and regional economic development.

Mr. Nahdi commented on the upcoming agreement, saying, “We have great plans to deepen our investment in Kenya and in Bamburi.”

“The Amsons Group is officially entering the Kenyan market with our offer to purchase shares in Bamburi, as part of our corporate market expansion plan. In the upcoming months, we plan to make investments in other industries in Kenya.”

In a move that will see Bamburi shareholders paid Ksh65 ($0.51) per share, the group announced its intention to launch a public take-over offer through Amsons Industries (K) Ltd, its Kenyan subsidiary and investment vehicle.

Bamburi shares concluded Wednesday’s trading at Ksh45 ($0.35) per share on the NSE, thus Amsons’ cash offer, at Ksh65 ($0.51) per share, offers a premium of Ksh20 ($0.16) per share or 44.4 percent gain.

Holcim owns a combined 58.3 percent of Bamburi through two investment vehicles: Fencem Holding Limited and Kencem Holding Limited.

“Halcim’s strategy of extending our leadership in our core markets as the global leader in innovative and sustainable building solutions is advanced by this agreement to sell our stake in Bamburi Cement,” stated Martin Kriegner, regional head of Holcim’s Asia, Middle East, and Africa.

Amsons Group was established in Tanzania in 2006, and it currently generates over $1 billion in revenue annually. In the past, bulk oil and petroleum product importation under the Camel Oil Tanzania retail brand constituted its principal commercial activities.

With the recent acquisition of the Mbeya Cement factory, the business has expanded its manufacturing portfolio over time, now capable of producing 6,000 metric tonnes of cement per day.