Tanzania’s Amsons Group has initiated a KES 23.5 billion buyout deal of Bamburi Cement, acquiring an initial batch of the listed cement manufacturer’s shares valued at KES 8.9 billion through a block trade.
The group purchased 137.1 million shares in Bamburi Cement at a price of KES 65.0 per share, amounting to KES 8.9 billion in the transaction conducted on Wednesday,18 December,2024. The trade set a record, accounting for 38.0% of Bamburi’s total issued shares of 362.9 million and contributing 95.0% of the day’s total turnover.
This significant transaction boosted the Nairobi Securities Exchange (NSE), where total equity turnover increased significantly by 6052.0% to KES 9.4 billion from the previous session’s KES 152.5 million.
The total volume of shares traded also saw an extraordinary rise of 1864%, jumping to 174.6 million shares from 8.8 million shares in the previous session, with Bamburi accounting for 78.0% of the day’s session.
The acquisition of Bamburi Cement has been marked by competition. On December 4th, Savannah Clinker withdrew its rival offer just a day before the final acceptance date, citing the Capital Markets Authority’s refusal to extend the offer period by 60 days following the arrest and prosecution of its chairman.
If Amsons Group successfully acquires 90% or more of Bamburi’s shares, the company plans to buy out the remaining shareholders at the prevailing market price and initiate a squeeze-out process. Additionally, Amsons has indicated that it will evaluate Bamburi’s continued listing on the NSE and may apply for delisting if acceptances reach 75.0% or more.
