Billionaire investor Baloobhai Patel and Standard Investment Bank’s Mansa X Fund bought 10.23 million Bamburi shares in July in the wake of Tanzanian conglomerate Amsons Group’s buyout offer of the cement maker, eyeing capital gains and a potential special dividend payout.
Amsons offer triggered a rise in the trading price of Bamburi shares on the Nairobi Securities Exchange (NSE) —from Sh45 to an average of Sh62 since the July 10 publication of the firm’s offer documents.
The Tanzanian firm offered to buy the shares at Sh65 each —or Sh23.59 billion in total— hoping that the premium would entice shareholders to look at its bid favourably.
On Wednesday, Bamburi shareholders received a counteroffer from Kenyan firm Savannah Clinker Limited at a price of Sh70 per share, or Sh25.41 billion in total. The Bamburi share price closed at Sh65.75 on Wednesday.
Amsons filings showed that Mr Patel, through his investment vehicle Aksaya Investment Holdings Limited, held 30.52 million Bamburi shares as at June 30, 2024, equivalent to an 8.41 percent stake in the company.
The acquisition notice published by Savannah shows that by July 31, his stake had climbed to 37.73 million shares, indicating an acquisition of an additional 7.21 million shares during July.
As per Wednesday’s closing price, the additional stake is valued at Sh474 million, with his total holding now valued at Sh2.48 billion.
His share in the company has now more than doubled since the beginning of the year, when he held 14.96 million units.
The filings by Savannah also show that SIB’s Mansa X Fund now holds 3.02 million Bamburi shares, with a current value of Sh198.9 million. The fund was not listed among Bamburi’s top 10 shareholders in the June 30 register.
The shares acquired by Mr Patel and Mansa X were mainly supplied by retail investors, whose collective stake in Bamburi dropped by 8.2 million shares in July to 32.72 million units.
NSE data shows that between July 10 and July 31, investors traded a total of 10.23 million Bamburi shares.
The price increase when the Amsons offer was disclosed provided an incentive for retail shareholders to cash in on their stock, especially when the NSE market price nearly matched the offer price.
The price appreciation effectively gave investors a chance to book their offer profit early without waiting for the conclusion of the Amsons deal, whose timelines are dependent on regulatory approval with a long-stop date of November 2025.
For those buying the shares, the incentive lay in the potential of further capital gains upon the progression of the deal, with the counteroffer now opening an additional avenue for further hikes in the offer price as the parties compete to convince shareholders to favour their deal.
Bamburi shareholders are also eyeing a potential special dividend from the Sh12 billion sale of the company’s stake in its Ugandan subsidiary Hima Cement earlier this year.
Both the Amsons and Savannah offers acknowledge the right of the existing shareholders to receive the special dividend if and when it is announced by Bamburi.
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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.
Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).
Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.
While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.
“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”
Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.
Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.
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“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”
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On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.
He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:
At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.
There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.
Source: allafrica.com
