Bamburi Cement PLC has disclosed plans for the sale of a substantial portion of its stake in Hima Cement Limited, a major cement producer in Uganda.
The announcement, made through a cautionary notice on November 14, 2023, revealed that Bamburi aims to sell 70% of its total issued shares in Hima Cement Limited, amounting to 1,335,400 ordinary shares.
According to the notice, the proposed transaction involves Himcem Holdings Limited, a subsidiary of Bamburi Cement PLC, selling its 70% stake in Hima Cement Limited. The buyers, Sarrai Group Limited and Rwimi Holdings Limited, are set to acquire the entire issued share capital of Hima Cement Limited for a staggering USD 120 million, subject to certain adjustments to be determined at or after completion.
The Share Purchase Agreement, entered into by Himcem Holdings Limited, Cementia Holding AG, Sarrai Group Limited, Rwimi Holdings Limited, and Bamburi, outlines the terms of the acquisition. The completion of the transaction is contingent upon the satisfaction or waiver of specific conditions and, crucially, the approval of Bamburi shareholders.
Should the deal materialize, Sarrai Group Limited and Rwimi Holdings Limited will collectively possess 100% of the issued share capital of Hima Cement Limited. Consequently, Hima Cement Limited, along with all its subsidiaries, including Hima Cement Rwanda Limited, will no longer be part of the Bamburi group, becoming instead a member of the Sarrai group.
The Bamburi board stressed that further details about the Proposed Transaction would be disseminated through requisite announcements and a shareholders’ circular in adherence to the Capital Markets (Take-overs and Mergers) Regulations.
The cautionary notice concluded with a stark warning to Bamburi’s shareholders and other investors. Until further announcements are made, they are advised to exercise caution when dealing with Bamburi’s ordinary shares listed on the Nairobi Securities Exchange.
