Amsons Group’s Bambuli Cement takeover will mark one of the largest takeover deals in the east African region. Founded in 2006 in Tanzania, amsons now has more than $1 billion in annual turnover.
By a Correspondent & agencies
Tanzania’s Amsons Group, a family-owned conglomerate with interests across various sectors, has made a $182.89 million offer to buy a 100% stake in Kenya’s Bamburi Cement from Holcim, a Swiss multinational, in what will mark one of the largest takeover deals in the East African region.
On Wednesday, the Tanzanian firm launched a take-over bid through its Kenyan subsidiary Amsons Industries (K) Ltd, offering shareholders $0.51 (KES65) per share. Amsons’ bid will offer the cement manufacturer’s shareholders a 44.44% premium on the share closing price on Wednesday.
“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 foreign direct investment,” Amsons said in a statement.
The acquisition could see the local cement manufacturer delist from the Nairobi Securities Exchange (NSE).
Bamburi is the largest cement maker in Kenya, controlling about 30% market share. Edha Nahdi, Amsons managing director, said the acquisition is part of the company’s plans to expand into East Africa’s largest economy.
“We have great plans to deepen our investment in Kenya and Bamburi. It is part of our market expansion plan and will mark the formal entry into the Kenyan market. We plan to invest in other industries in the coming months,” said Edha Nahdi, Amsons managing director.
Founded in 2006, Tanzania’s Amsons has interests in cement, real estate, oil and gas, and wheat flour across Malawi, Zambia, Mozambique, Burundi, and the Democratic Republic of Congo. The company has an annual turnover of over $1 billion.
In November 2023, Holcim sold its 65% stake in Mbeya Cement Company, a Tanzania subsidiary, to Amsons. The latest bid could signal the Swiss firm’s divesture from the East African market which it holds two investment arms, Kencem Holding Limited and Fincem Holding Limited.
The acquisition bid comes four months after Bamburi Cement exited the Ugandan market by selling its stake in Hima Cement to Uganda’s Sarrai Group and Rwimi Holdings.
