Tanzania’s manufacturing and energy company Amsons Group has issued a bid to acquire a 100% stake in Kenya's Bamburi Cement valued at US$180 million (Sh23.2) billion.
The acquisition will make the transaction one of the largest investment deals within the East Africa region, highlighting the group’s intent to invest in one of Kenya’s major blue-chip companies listed on the Nairobi Securities Exchange (NSE).
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.
According to the Tanzanian firm, this acquisition aims to bolster Amsons’ presence in the East African cement sector and represents a significant step in regional economic development and market integration.
“We have great plans to deepen our investment in Kenya and in Bamburi.” said Amsons Group Managing Director, Edha Nahdi. 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 9 July, 2024.
The group’s acquisitions come barely a few months after it acquired the Mbeya Cement facility in Tanzania, which was purchased from Holcim. Recently, Bamburi Cement has sold off its stake in several regional cement companies. Early this year, the company completed the sale of its 70% stake in its Ugandan subsidiary, Hima Cement, for an estimated $84 million (Ksh12 billion).
Holcim’s Regional Head of Asia, Middle East & Africa, Martin Kriegner, expressed confidence in Amsons Group as a strategic partner capable of developing Bamburi Cement’s business in the long term.
“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.” said Martin Kriegner.
Amsons Group’s intention to acquire Bamburi Cement is part of its broader market expansion plan, with further investments in Kenya anticipated in the coming months.
Amsons Industries is known for its products known under the brand names ‘Camel Cement’ and ‘Tembo Cement’ in Tanzania.
Nahdi reiterated the group’s commitment to leveraging its advanced cement manufacturing technology to replicate its success in the Kenyan market, building on the strong foundation established by Holcim at Bamburi Cement.
Amsons Group is a family-owned business founded in 2006 in Tanzania that now has more than $1 billion in annual turnover. Its main business operations historically involved bulk oil and petroleum products importation under the Camel Oil Tanzania retail brand.
Founded in 2006, Amsons Group has diversified its operations beyond bulk oil and petroleum products, expanding into the manufacturing sector with a 6,000MT/day cement production capacity.
The group also operates a 500MT/day wheat flour milling plant, a state-of-the-art concrete plant, and extensive logistics and fuel operations across several African countries.
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 in Tanzania to Amsons Group and has recently completed the acquisition following regulatory approvals.
