Bamburi Cement disclosed the complete sale of its ownership in Uganda, relinquishing 100% of its stake in the region in an official announcement dated March 6.
Specifically, Bamburi divulged the sale of 1,335,600 ordinary shares held in Hima Cement Limited, a registered entity in Uganda.
This divestment accounts for 70% of the total issued shares in Hima Cement Limited, previously owned by Himcem Holdings Limited, a subsidiary of Bamburi Cement.
The completion of this transaction, initiated on November 14, 2023, culminated on March 5, 2023, following the satisfaction of all preconditions outlined in Bamburi’s shareholder meeting on December 14, 2023.
With the sale of over 1.3 million shares, Bamburi Cement effectively exited the Ugandan market, formally severing its proprietary connection with Hima Cement. Henceforth, Hima Cement will no longer be recognized as a subsidiary of Bamburi Cement, marking a significant corporate realignment.
Bamburi Cement emphasized the material significance of this transition and urged shareholders and investors to exercise prudence when trading its shares.
The Board of Bamburi extended appreciation to its shareholders and the Capital Markets Authority for their instrumental roles in facilitating the divestment process.
The acquisition, led by Sarrai Group Limited and Rwimi Holdings Limited, was initially announced by the National Securities Exchange on November 14, 2023, valuing the deal at Ksh18 billion.
Sarrai Group, under the leadership of billionaire Sarbjit Singh Rai, oversees the Rai Cement factory in Kisumu and holds various interests in Kenya, including Mumias Sugar Company.
Following the completion of the transaction, Sarai Group assumes control over a grinding plant in Tororo and a blending station in Namanve, in addition to Hima Cement’s operations in Rwanda and facilities in Kasese, Uganda.
This strategic move consolidates Sarrai Group’s presence in the East African cement industry, solidifying its position as a major player in the regional market.
