Tanzania's Amsons to forcefully acquire remaining Bamburi Cement shares

Tanzania’s Amsons Group is seeking to force out minority shareholders of Bamburi Cement following its successful acquisition of 96.5 per cent of the cement producer. 

Bamburi yesterday said it had received regulatory ="https://www.standardmedia.co.ke/business/business/article/2001507538/tanzanian-firm-buys-bamburi-cement-after-tycoon-drops-out">approval to suspend trading< of its shares at the Nairobi Securities Exchange (NSE) to facilitate the process that is expected to see Amsons Group become the sole shareholder of Bamburi. 

“Notice is hereby given to the shareholders of Bamburi Cement that following the successful completion of the takeover offer by Amsons Industries on December 5, 2024, Amsons acquired 96.54 per cent of the issued shares in Bamburi,” said Bamburi in a cautionary statement yesterday. 

“Amsons intends to initiate the squeeze-out process to acquire the remaining 3.46 per cent of Bamburi’s shares held by shareholders who did not accept the offer. To facilitate the implementation of the squeeze-out, Bamburi has received approval from the Capital Markets Authority (CMA) to suspend trading of its shares… the trading of Bamburi shares at NSE shall be suspended with effect from the close of trading on February 27 until May 9 this year.”

Local laws allow investors who have acquired over 90 per cent stake in another firm to make an offer to the remaining shareholders for the acquisition of their shareholding at a price higher than the current market prices or the price offered to other shareholders.

The Tanzanian company acquired Bamburi from Holcim and other shareholders last year.

Holcim, the Swiss-based global building material and aggregates company, owned 58.6 per cent stake in Bamburi through Fincem Holding (29.3 per cent) and Kencem Holding Ltd (29.3 per cent). 

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Kenyan institutions and individuals owned an estimated 32.17 per cent of Bamburi shares while another 9.23 per cent was held by other foreign investors. 

In the takeover, Amsons Group acquired 96.54 per cent but a few Bamburi shareholders owning 3.46 per cent stake declined its offer of Sh64.50 a share.

Amsons had made the offer to buy Bamburi in July for what translated to a total of Sh23.59 billion

Bamburi’s shareholders, however, received a competing offer from Savannah Clinker, which had initially offered to pay Sh70 per share but later increased this to Sh76.55 per share, translating to Sh27.7 billion for the entire stake. 

Savannah Clinker, however, withdrew its bid in early December and left Amsons as the sole bidder.